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

Author: Mark Fletcher

Sales based replenishment project

The next version of the a major newsagent sales based replenishment program is a few weeks away.  Through Tower Systems I have been involved since SBR was first tested with newsagents years ago.  Each incarnation has been an improvement on the last.  I have seen that good sales data from compliant newsagencies has been used to refine the project.

This next incarnation of SBR is all about avoiding sell outs – something proactive newsagents will be pleased to hear.  It will drive good commercial outcomes.

The SBR project is proof that not all software products used by newsagents are the same.  There is a reason some POS products have not been part of the SBR evolution.  Yes, I am crowing.  Hard work is paying off.  This is practical progress for newsagents as it gives us access to new tools at the same time as our competitors – well most newsagents at least.

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Newsagency opportunities

The $1 a year magazine subscription offer

amazonmags.jpgAs a reward for buying a DVD from Amazon.com last week, I received an email from the company saying I qualify for three amazing magazine subscription deals:

Thanks to your recent DVD order, you now qualify for a $1 subscription to Rolling Stone (1-year), Men’s Journal (1-year) or Us Weekly (2-month). You can purchase individually or combine for $1 each, up to three total.

The consumer in me loves an offer like this. If I was a US resident why would I not take up at least one of the deals? I am a fan of Rolling Stone magazine and to get this delivered for a year for $1 would be excellent.

The retailer in me cringes when I read about the deal as I know there must be plenty around like this – co-promotions with other products. While we see few of these in newsagencies I have seen them in fitness centres, fashion businesses and sports clubs.

Every heavily discounted magazine subscription sold outside the retail channel is another reason for a shopper to not visit a newsagency or other magazine outlet and this challenges the health of the category.

I understand the need for publishers to balance sales between retail, subscription deep-discount subscription and other channels. It is the retail channel which billboards mastheads and helps titles find new readers. While a deal like the one from Amazon which I received last week may generate subscriptions, I suspect that someone discovering Rolling Stone in my newsagency will engage more deeply with the title than someone who picked it up for 8.3 cents a copy.

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magazine subscriptions

Staples promoting private label stationery

In-store Marketing reports that US stationery retailer Staples is actively promoting its private label products with bold aisle end and other displays.

The chain is devoting a majority of endcaps to Staples-brand products, which are merchandised beneath headers that read, “Save the easy way” and “Save with Staples brand.” The theme is also communicated on ceiling banners and in-line headers in the seasonal department. Aisle violators in other departments feature product shots.

This an excellent story about how to position a house brand in today’s conditions. I especially like their whols of business approach from branding to the in-store message and external marketing.

The Staples investment in its house brand is different to how house brands were treated years ago.  It is clearly working well for them.

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Stationery

UK magazine results

According to the recent circulation figures the overall number of magazines sold or distributed in the UK has grown by 3.7% year-on-year, to reach a total net average of 81,227,572 in the final six months of 2008.

Creative Match has details of the July to December 2008 UK magazine audit.  The detail in the report is less rosy for some categories.

In the UK as in Australia, some titles are faring better than others in the current economic circumstances.  From data I see, this is varying area by area.  Our task as retailers is to see these trends and leverage them – that is, if a category is growing in our shop, provide more support and see if you can get an even better lift.

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magazines

We need to advertise lottery products

I head a radio advertisement tonight for Tattersalls lottery products in 7-Eleven outlets in Victoria.  It was a good ad, promoting the long opening hours and the convenience of 7-Eleven outlets.  It tapped beautifully into the dream people buy when the buy a lottery ticket.

Newsagents and other lottery agents need to respond to this.  However, any response will be a challenge since we operate under so many shingles: newsagents, chemists, lottery kiosks and within those there are many brands.But we cannot let such challenges stop us for if we do we leave 7-Eleven to have their airwaves to themselves in promoting lottery products.

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Lotteries

Better sales for Women’s Health

fh_whealth.JPGRecent sales research undertaken by Pacific Magazines indicates that when Women’s Health magazine is positioned next to marie claire or Madison it sells on average 17% more than if left in the more traditional health and fitness magazine area.

For more than a year we have co-located Women’s Health above our women’s weeklies. Thanks to the sales data from Pacific, we have placed a display of Women’s Health next to marie claire. I’d urge other newsagents to try this.

Breaking a title out of its usual place helps it find new buyers and drives sales. While this co-location has a labour cost, it is an excellent way of achieving a better sell-through and that’s what publishers and newsagents want.

Too often newsagents treat magazines as a set and forget business. While this makes management easier, it means you are less likely to achieve your full potential in sales. I know from my own experience that there are around thirty titles which consistently respond well to location change, co-location or promotion elsewhere in the business – without the need for a free gift or some other offer.

I’d encourage other publishers to share data from retail trials so that we can help newsagents have more options for change in their magazine department.

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magazines

Promoting Top Gear Australia

fhn_top_gear_story.JPGCheck out how our team at Forest Hill are using the back of the ACP basket-builder stand to create a feature display for the latest issue of Top Gear Australia.  This display looks stunning in real life.  It is what guys are contronted with as they leave the guy magazine aisle.  This is found display space.  That is, space we created by using the back of the ACP stand.  The choice of the team to include related titles to the side and create a more complete story is what makes this work well.  This is ths second such display in this space and we are expecting big things for sales.

We will leave this display in place for at least a week and maybe longer – the pressure to change this is not ad great as exists for our other magazine display locations.

I appreciate that the Intralot forms get in the way – this is their space and we are trying to leverage this space for a win win.

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magazines

Don Burke cuts through the pile of newsagent mail

fhn_burkes_mar09.JPGNewsagents receive a ton of correspondence every week. Most of this communication is from suppliers telling us what to do, where to place product, what displays to create and the like. It is a pleasure to receive the letter we received from Don Burke. In the personally signed letter, Don thanked us for our support. Recognition like this encourages us to remember Burke’s Backyard and find other ways to support the title – because he acknowledges the support.

Before other publishers say what about me, I’ll acknowledge that we do receive recognition in other ways and I have blogged about that here before. What touched me about Don’s letter was its simplicity and the personal signature. It makes the recognition more personal and that is highly motivating.

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magazines

Newsagent training opportunities

Tower Systems is running free online training on magazine management and newspaper home delivery management which non Tower newsagents may find useful.  While some processes are Tower specific, general training is provided which could save time.  If you would like to participate please email bookings@towersystems.com.au.  You’ll need broadband and access to a phone for a toll free call.  The sessions are:

  • Magazine Management Workshop – 24/02/2009 2pm
  • Home Deliveries and Customer Management – 26/02/2009 11am
  • Magazine Management Workshop – 26/02/2009 2pm
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newsagent software

Promoting mobile recharge drives sales

dsc06250.JPGThese generic posters we made to promote mobile recharge are helping to drive sales in our shops.  They take less space than branded posters.  Placed appropriately, they remind customers and you can see them add a recharge to a sale.  If you would like some of these A3 posters, drop me an email. I will arrange for them to be posted to you.  You can also download them.  I am happy for anyone to use these posters.

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phone recharge

Are we having trouble choosing a digital camera?

what_camera.JPGJudging by the number of magazines being sent to newsagents with advice on choosing digital cameras, it seems Australians don’t know how to choose the right digital camera for their needs.  The four magazines in the photo is not representative of the full range many newsagents receive.  Magazine distributors are overfeeding newsagents not only with digital camera magazines but in most categories.  I suspect it will be too late for the health of the channel when (if) distributors realise the damage their poor management has caused.

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magazine distribution

Sydney Gift Fair good value

The Reed Gift Fair in Sydney is well worth a visit by any newsagent considering playing in the gift space.  It runs until Wednesday this week.

Judging by the number of newsagents there yesterday, many are now playing in this space.  It is terrific to see newsagents expanding beyond the traditional.  Some were looking at homewares, others at traditional gifts and even one newsagent looking at garden furniture – now that’s really outside the traditional.

Every newsagent I spoke with was excited about expanding with new products.

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Gifts

Another Bill Express screen

bx_screendead.JPGLack of compliance and consistency across the retail newsagency channel is our biggest challenge.  In Sydney yesterday, I saw another newsagency with the Bill Express light box still up and working.  It is situations like this which invite suppliers to look outside our channel for a more consistent and disciplined network of retailers.

UPDATE (23/02):  I was in a JB HiFi store today which had a DialTime light box on display.  On the side was a note: Not working. I take back what I said about newsagentx and compliance.

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Bill Express

Newsagency ombudsman, a good association role

There are many issues and disputes which newsagents encounter where the supplier is prosecutor, judge and jury. While some newsagents capably stand up for themselves, many do not. There are forums in some states available to small business, including newsagents, yet they are rarely used due to ignorance and lack of knowledge about the operation off the newsagency channel.

Associations have an opportunity here to create an ombudsman role. This could be funded from member fees as well as a supplier levy.

The newsagency channel ombudsman could hear disputes and adjudicate in line with a charter of operation agreed by newsagents and suppliers.

Such an office could provide a neutral ground place where account, supply and other disputes could be heard and mediated quickly – before things get out of hand.
What I have in mind is something more comprehensive than advice.  I see it as more structured than the ad-hoc defence run by some of the more proactive associations and marketing groups today. There could be rules and case management to ensure that the process is fair on all parties. Most of all, this would be an opportunity to diffuse issues before they get out of control.

I’d like to think that suppliers would welcome an ombudsman role as it might help issues get resolved in a more valuable way and before they take action.

It is this level of practical help where associations can make a difference.

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Newsagency challenges

Cross media deal in South Australia

Advertiser Newspapers (part of News Corp) and Channel 7 Adelaide yesterday announced a cross media deal to deliver a new multi media news and current affairs service.  I’d expect to see more of this is the type of cross media platform partnership as the disruption of traditional media, which we have seen in the US and Europe in recent years, picks up pace here.

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Media disruption

Hiding the copier with art

artcopier.JPGClick on the thumbnail for a larger copy of the photo showing how we are hiding the back side of our photocopier with an art display.  By itself this display would not work but when seen with the display capping the next aisle it presents a good retail story.  We continue to move art around as we have found that this helps find new customers.

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art supplies

Buffy the Vampire Slayer partwork out now in newsagencies

frank_buffy.JPGIt is great to see Buffy the Vampire Slayer partwork series launch in newsagencies.  The popular TV show targets a demographic we like.  Early indications are that sales will be good.  We certainly have people requesting future copies be put away – this is part of the unique service newsagents offer.  Our putaway service is a reason we have partworks and other retailers don’t.  Overseas, partworks are sold in supermarkets.  Australian newsagents are fortunate to have the opportunity.

Usually, when I write about partworks, people comment publicly or privately to me about the unreliability of supply and other challenges associoated with them.  For some time I was a vocal critic of partworks. I took up an invitation to look behind the problems and develop something which works for my business.  Three years on it works a treat.  Supply is good.  In return I provide accurate sales data.  Occasionally there are bumps but these are fixed.

I will acknowledge that I am lucky to have access to the people who can fix problems and therefore don;t have to deal with call centres.  I have put it to stakeholders – publishers, importers and distributors – that a thorough review of the partworks supply model could drive excellent sales growth.  From a newsagent’s perspective, it all comes down to supply consistency through the entire series.  This can be easily fixed.

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Newsagency opportunities

Intralot network down in Victoria

The Intralot network is down in Victoria today due to an Optus network problem.  This is also affecting access to the Intralot help desk.  Optus people have been working on the problem all day.  I am posting this here as a service and not for commentary.

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Lotteries

E-ink display touted as newspaper replacement

PC Pro reported yesterday that NEC is preparing to launch a 19.5 inch e-ink display with better contrast than newsprint and a very fast refresh rate.  There is online talk that this screen gets closer to a newspaper experience. I know that newspaper publishers are certainly watching this and other technology which enables them to make their content more accessible.

If I were a newspaper publisher I would have money invested in products like this and other mobile devices as they are the replacement for the current newspaper distribution system.

Whether we (newsagents) like it or not, this paperless newspaper reading technology will evolve and, eventually, become ubiquitous.

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Media disruption

Women’s Weekly starts 2009 well

fhn_aww.JPGThe Australian Women’s Weekly has kicked off 2009 with a bang. Starting the year with the Obama family on the cover was a brilliant move and following up with Magda Szubanski and her weight loss story in the latest issue is proving to be as popular. My only minor complaint is the free cookbook on the cover – it covers Magda. That said, the word of mouth around this issue is very strong. Newsagents rely on the traffic and sales of AWW. Indeed, other publishers have relied on AWW to drive the health of the category.  Let’shope the strong start to the year continues.

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magazines

Finding readers for The Week

fhn_theweek.JPGA customer commented that they need to come up with a good news summary for the week because he didn’t have time to read the papers with all the news around. I mentioned The Week to him and he was surprised that a title matching his exact description existed. True story.

I believe in The Week. It is a good magazine, filling a need. That said, I am not sure that their marketing campaign has worked.

We are trying a different approach by promoting it more consistently with newspapers, at least to put it on the radar of newspaper buyers. For the next few weeks we will have it on the stand in front of newspapers and see if that helps with our customers.

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magazines

Delivering a good laugh with the newspapers

Robyn Ritchie from newsXpress Whittlesea this morning delivered the newspapers for the first time.  Their regular driver has relocated following the loss of his home in the bushfires.  Robyn and one of her girlfriends hit the road early and tried their hand at the whole newspaper throwing thing.  She said the only complaint they are likely to get is about the noise they made as they laughed their way through the round.

I bet lots of newsagents can recall the first time they threw a newspaper.  It’s a good thing to reminisce about.  Up at Whittlesea things are a bit different thanks to the considerable challenges brought about by the fires.  It is inspiring that Robyn and Neil are finding some laughter amid those challenges.

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newspaper home delivery
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