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

Author: Mark Fletcher

Tattersalls claims Quick Pick

Tattersalls has claimed that it owns the term Quick Pick meaning that Intralot has had to ditch tonnes of printed material and come up with a new name.  While we will work hard to pitch their Lucky Pick to customers, customers will call it what they will.  If it catches on, customers wanting a Tattersalls product could ask for a lucky pick, now that would make me smile.

0 likes
Lotteries

Swish group and newsagents

be_screen2.JPGI bet newsagents have not heard of the Swish group.  This public company, SWG on the ASX, claims newsagencies as part of their retail signage network – see their May 2008 shareholder update.  Bill Express announced an agreement with Swish on April 28, giving Swish control of the advertising screens in newsagencies.  In February, Bill Express removed the $210 a month rebate which it had reviously guaranteed to pay newsagents in return for having the screen in their stores.

I wonder if Swish needs to make an announcement to the ASX about the Bill Express situation. I hear that many screens in newsagencies do not work and that where they do, many newsagents have them turned off because of their issues with Bill Express.   I do not plan to turn my screens on until Bill Express addresses my concerns over their breach of agreement relating to the “guaranteed” $210 a month they would pay per store.  Not that it matters in one of my newsagencies as the screen has not worked for months.

0 likes
Bill Express

The Bill Express liability

I estimate that newsagents currently ‘owe’ somewhere between $15 million and $20 million to Technology Business International for the equipment used in-store for the Bill Express Dialtime bill payment / phone recharge service.

Most newsagents entered into their lease agreements for this equipment expecting that they would never have to pay the lease costs thanks to rebates offered by the company.

The removal of the rebates by the company in February left newsagents out of pocket for the fees for the first time. hence the interest in the network wide ‘liability’.

I wonder how this all plays out when the future of the company is being considered. While Bill Express probably unlocked the total value of the lease early on, I would not be surprised if there was some liability from the company to the financier in the event of a mass newsagent revolt or some other issue around the monies being paid.

$15 million to $20 million is an amount newsagents cannot afford to lose. This is why I support Federal Court action to challenge the actions of the company and others which has left newsagents in this precarious position.

0 likes
Bill Express

Promoting the Who Pantene offer

who_pantene.JPGWe are promoting the Pantene giveaway with Who this week. The offer is excellent but the point of sale material light on so we created our own to make for (we hope) a better display. We would have displayed this at the counter but that space is supporting the In Style giveaway.Magazine giveaways are important in driving sales. The key is to not become too dependent as has happened in the UK with Sunday newspapers. This Who offer fits their demographic and will be a great success.

0 likes
magazines

The dying CD

Death knell sounds for CDs published by The Globe and Mail in Canada is a story worth reading.  The opening two paragraphs offer chilling reading for any music retailer.

The compact disc has less than three years left in its reign atop the music industry in Canada, with new data on music sales indicating the download will officially be king by 2011.

Physical music distribution, defined largely by the sale of compact discs, is eroding faster than expected, while online music is growing quickly, says a report published Wednesday by PriceWaterhouseCoopers LLP.

This is a story not just about music.  It is about smart always-on devices, the desire for specific content rather than aggregated content and the elimination of old world supply chains.

While it sounds like doom and gloom, it is as much about opportunity.  It relates to newsagents as much as music retailers.

0 likes
Media disruption

Good and bad bagged magazines

bagged_mags.JPGSome publishers handle bagged magazines better than others as the photo shows.

The folks at Fast Car have included their masthead on the bag whereas the folks at APC have hidden the masthead and made picking the title more challenging.

Fast Car in this packaging has a quality feel. Also, the information on the bag makes it less likely to be ripped open. APC feels cheap. The lack of detail on the bag makes it more likely to be ripped open.

0 likes
magazines

Last Wednesday Tattslotto

last_wednesday.JPGAt Forest Hill we are getting behind the last Wednesday Tattslotto draw this coming Wednesday, June 25. We are promoting that there can be no jackpot, the prize pool must go. The focus of our locally produced marketing is our house syndicates which we have created just for the occasion. This, coupled with Tattersalls provided material will drive good sales.

Embracing the final draw as we have allows us to talk about the changes coming July 1 when Intralot games start.

0 likes
Lotteries

Investing in the Aussie Phonecard

For transparency, I post below a copy of an announcement today about our new shareholding in Access International, the company behind the Aussie Phonecard.  I have been impressed with Aussie for some time – the 30% commission it pays newsagents, the quality of call on the cards and the real value to consumers.  It’s not often newsagents can make 30% GP from a product which does not require any stock investment.

Access International Group, the company behind the popular Aussie Phonecard, has completed a share placement to parties associated with retail software company Tower Systems.

As a result of the share placement, reflecting 25% of paid up capital, Tower Systems owner Mark Fletcher has joined the Board of Access International Group Pty Ltd.

The funds and other resources brought in through the share placement will be used by Access to bring additional phonecard products to market and to expand the retail network selling the company’s products.

“The technical and organisational synergy between Access and Tower is excellent on many fronts” commented Access Managing Director Steve Mclean.  “We will quickly leverage this to bring new offers to our retail partners and to expand our retail network.”

“I was drawn to Access by the honesty of their consumer offer and the genuine value they deliver their retail partners” said Mark Fletcher, Managing Director of Tower Systems.  “I am looking forward to working with the company to help more Australians benefit from their products.”

Access plans for first additional phonecard product launch for July this year.

The company is currently recruiting business development staff in Melbourne and Sydney to drive increased penetration of its products.

The Australian phonecard market is estimated to be worth in excess of $220 million a year with annual growth of 12%

FOR MORE INFORMATION:  Mark Fletcher (Tower Systems) 0418 321 338; Steve Mclean (Access International) 07 5526 9737.

Tower Systems has been serving Australian retailers since 1981.  Its software is currently running in 1,532 newsagencies around Australia and 1,000 other retailers.

Access International has been supplying phonecard product to Australians since 2002.  Steve McLean has been in the phonecard channel since 1999. The company has a reputation for a true what you see is what you get offer – no hidden charges!

I am excited by the synergy this relationship offers as we work together to develop other products which can deliver excellent GP to newsagents.

0 likes
About us

Report on Vic newsagent Bill Express meeting

Seventy newsagencies were represented in a meeting held in Melbourne yesterday to discuss Bill Express and the company’s removal of marketing subsidies which it used to promote the service into newsagencies. One hundred newsagents apologised in advance of the meeting for not being available to get away from their shops.

The newsagent-only meeting opened with three brief presentations:

  • A summary of activity around Bill Express relating to its future.
  • A summary of ACCC investigation into matters around representations to newsagents prior to their signing of agreements to take on Bill Express.
  • An outline of proposed Federal Court action commenced by a group of newsagents convened through NANA and being prepared by Melbourne based QC Charles Sweeney and briefed by former General Manager of the ACCC and Barrister Hank Spier. The proposed court action is to focus on three respondents: Bill Express, Technology Business International and the Australian Newsagents’ Federation.

What followed was a discussion about the various options available to newsagents including the legal action proposed by the ANF against Bill Express over the contracts newsagents have with the company.

Some newsagents spoke to their specific circumstances, highlighting the difference in agreements and terms around Bill Express and related contracts with newsagents. Others spoke about the issue of due diligence of the agreements before they were put to newsagents. Others spoke to their contact with the company over the last six months and the challenge of accessing information necessary to them protecting their interests.

Concern was raised as to why VANA had not acted on this matter for Victorian newsagents. Ron McKinnis, VANA Chairman, spoke to the meeting, took on board the concerns raised about VANA apparent inaction and committed to taking these back to VANA.

While newsagents attending were angry and hurt at the serious financial situation they are in over Bill Express, the meeting was cordial, productive and co-operative.

All bar one person attending the meeting voted to support the Federal Court class action which has been commenced by NANA. The details of these newsagents have been provided direct to the legal counsel for inclusion in the list of newsagents prepared to financially support the action. The legal team will be in direct contact about progress of the matter through the Federal Court and assistance they may require – either financial or evidentiary as necessary.

We anticipate having a process established for other newsagents who want to offer direct support to the legal team in the same way.

The benefits of the NANA instigated Federal Court action already on foot over the proposed ANF action, as put to and discussed at the meeting yesterday are:

  • It is independent of any party which may have a conflict in this matter.
  • Work on the case is well advanced.
  • Newsagents are not required to join any association to be part of or to support the action.
  • No Association is controlling the agenda or briefing legal counsel.

In the course or organising the meeting Adam de Jong and myself took many calls from newsagents in tough circumstances. There were tears of stress over the financial hardship they now find themselves in over Bill Express unilaterally changing the terms of their agreement. While these stories were difficult to listen to, they reminded us of the personal impact the actions of Bill Express is having. They redoubled our commitment to yesterday’s meeting and ensuring that newsagents achieve a just outcome from the Bill Express mess.

0 likes
Bill Express

Publish your own magazine

MagCloud is a new easy way to publish your own magazine. You create the content, upload a PDF and they take care of physical fulfillment including printing using the Indigo technology from HP. This is a similar approach to the self publishing sites which handle books which are printed on demand. All amazing stuff, especially for short run, local and or special interest magazines.

While the MagCloud model talks about distribution through mail, there is no reason this cannot work with a retail pitch. Imagine being the true magazine specialists with local area magazines – exclusively in your newsagency. Another use could be for one-shot titles on issues which are very hot. For example, say your city is hit by the worst weather in 30 years, publish a magazine of photos as a record of the experience.

Another example could be of local sports finals – people love to read about themselves and family members in a professional publication. This service or at least the technology behind it could make producing local magazines easier.

0 likes
magazines

Walk through Sophie Randall

mc_sign.JPGWe are organising a walk through one or more of our Sophie Randall card and gift stores for anyone wanting to see the operation from a non-consumer perspective and, in particular, to see how we handle multiple stores off the one central point of sale technology platform. With more newsagents owning multiple retail outlets, this is a technology of growing interest for newsagents.  Tim Batt is organising this can can be contacted on timb@towersystems.com.au.

0 likes
newsagent software

Chasing a bigger sales basket

sales_basket.JPGWhen I saw the items a customer was purchasing on Friday last week I had to take a photo as it was a perfect example of the newsagency working across multiple categories to build a better basket.

The customer was buying Country Style magazine, a birthday card and a small inspirational booklet from Compendium. Total value in excess of $17.00 – considerably more than our average sale value.

In choosing gift and gift related items to add to our newsagencies we focus on card giving occasions, especially those which lend themselves to impulse purchases. Adding value to card sales is easy if we buy well for the business. This does not mean we ignore basket building opportunities around other categories of products – cards are the easier opportunity.

Old style marketers tell newsagents to pitch up-sell opportunities across the counter and to use noisy posters to promote discounts and the like. While there is a place for the old school noisy approach occasionally, sustained business growth comes from smart buying and even smarter product placement. In the case of the inspirational booklets, we have them on display as you enter the card aisle. This adjacency is smart, the shop pitches the up-sell for us, the customer makes their own choice without any pressure.

We track basket performance in our Tower Systems software. This helps us improve on our own performance and drive more efficient sales.

0 likes
Gifts

Growing lottery sales

I was fortunate to meet with Dr Katakis, the CEO of Intralot yesterday.  While not the purpose of the meeting, we did talk about the threat made by Tattersalls to turn off access to their product in my business.  He provided some contact details within Government agencies which should help resolve the matter.

Tattersalls would be well advised to accept that they have lost their monoopoly and that it would be in the best interests of their products and brand to put their big stock away and focus on developing their business in partnership with the retail channel rather than the current approach of legal threats of swift economic penalty if you do not follow their every demand without question.

I want to grow the sale of lottery products regardless of the brand.  Intralot products will appeal to one demographic of player and Tattersalls to another.  I want the full suite of products to succeed.  Physically separating them as Tattersalls demands makes this goal a challenge to achieve.

0 likes
Lotteries

Why I love Goal Weekly

goal_weekly.JPGGoal Weekly is a great weekly football newspaper. This Victorian publication is loved by football (soccer) fans. I like it because the publisher actively supports newsagents. Their website lists newsagencies where it can be purchased. What I really like about Goal Weekly is their radio ad, it explicitly says the newspaper is available from your newsagent. That’s us folks.
Here is a special interest newspaper promoting that we are their retail channel. That is why I love Goal Weekly. They wholeheartedly support us. In today’s deregulated marketplace such support for our shingle is rare. When I heard the radio ad I made sure I found the title in the shop so I could see how I could better support it in return for their support.

0 likes
Newspaper marketing

QLD newsagents to meet on Bill Express

The Queensland Newsagents’ Federation has organised a meeting for Tuesday June 24 at 3pm at the GNS offices to advise attendees about avenues of possible relief open to them. The announcement sent says, in part:

At that meeting we will be actively advising any newsagent who may wish to know how to join the NSW newsagents sponsored class action.

Taking in excess of 50 calls from newsagents yesterday about the Bill Express matter, I know the financial hardship and emotional pain the Bill Express situation is causing many families. Newsagents feel misled and are prepared to bind together to fight for a fair financial resolution and for those responsible to be held accountable.

0 likes
Bill Express

Good paper display

paper_display.JPGI saw the paper display in the photo at the Melbourne airport yesterday. It’s variation on what others produce except that it is a very efficient footprint, is movable and very strong. This unit could easily carry the volume of stock necessary for a Saturday. I also like that the shelves can be adjusted so we could fit more foreign language stock on the same unit we use for our daily newspapers.

Newspaper stands used to be set-and-forget. Being able to move them like this is better.

0 likes
retail

Books on the dance floor

We setup book sales in Frankston and Forest Hill yesterday and as these things usually go, customers were buying stock as we opened the boxes.  In each store we did close to $500.  For a Tuesday without any external marketing this is good for setup day.

book_sale_fhn.JPG

We know from our experience that the best way to sell books is on tables as shown in the photo.

0 likes
Book retailing

Dead counter space

tatts_counter.JPGTattersalls withdrew all remaining instant scratch ticket stock in Victorian Monday, leaving 40% of the counter space allocated in our Forest Hill store empty with no prospects of new product.  A threatening letter from their Senior Corporate Solicitor Monday indicates that they intend to fight to retain “their” space.   Dead counter space is commercial suicide.   I hope that commonsense prevails.  In the meantime, Tony Robinson, the Minister for Gaming continues to sit on his hands.

0 likes
Lotteries

Vic. newsagent meeting on Bill Express tomorrow

VANA sent a fax to Victorian newsagents yesterday saying it was not involved in the newsagent meeting tomorrow about Bill Express. They could have been involved but they chose not to – probably because their agreement with the ANF precludes them acting against the ANF.

The ANF is pursuing one avenue of possible legal action on the Bill Express matter. There is advice to suggest newsagents may be well served with taking a less restricted view.
If you are a Victorian newsagent and you have Bill Express then I urge you to attend the meeting tomorrow:

Thursday June 19 at 11am
Crest on Barkly Hotel, Barkly Street St Kilda

There is news to report about a possible legal case based on advice which has not been nobbled. Thre is also news to report on ACCC activity around the Bill Express issue.

For more further information, please contact: Adam de Jong, Romsey News and Lotto. Mobile 0417 383 730 or Mark Fletcher, newsXpress Forest Hill. Mobile 0418 321 338.

0 likes
Bill Express

Supporting Wine magazine

frank_wine.JPGWe are lucky in Frankston to have three good magazine display opportunities otherwise Gourmet Traveller’s Wine magazine would miss this great display by Rhonda. While sales will not be amazing, it is important we promote titles like this to show that have diversity beyond what our demographic usually purchases. The cover of this issue of Wine makes for a bold display. Check out the wine bottle on the lower right corner.

0 likes
magazines

Wedding connection in Frankston

frank_wed.JPGTo connect with the Melbourne Wedding and Bride Expo our Frankston team created this display of wedding magazines near our counter to connect with their popularity. It looks fantastic!

We are using a new stand which takes less space and allows for faster creation of these displays – important given the labour cost of the various displays newsagents complete every week.

We sell more than half our weeklies off the counter at Frankston and this display is right near this high-traffic weeklies area. The two feed off each other. This is the type of display I mean when I write that newsagencies need to up-sell in the store layout. Too many are set and forget businesses where customers become store blind.

0 likes
magazines

You set the price of the magazine

The publisher of Inc. magazine tested a new pricing model with 5,000 potential subscribers by inviting them to decide the price they would pay for a subscription. Athena Schindelheim reports in Inc. that the test was a dud. It is an interesting test for a magazine publisher though.

0 likes
magazines

Promoting Euro 2008

euro2008.JPGWe are promoting all the magazines connected with the Euro 2008 international soccer tournament at our newsXpress Forest Hill store. The display in the photo is on the front corner of our counter – the best spot in the shop.

This is a great opportunity to remind people visiting our shop of the range of soccer related titles we have in-store and that we’re up with Euro 2008 news.

The display supports not only magazine sales but also assists foreign language newspaper sales, Western Union transfers, ethnic card giving occasions and several other categories in-store. It demonstrates a connection which is hard to pitch in any other way.

I don’t see our efforts as anything other than what should be expected of a magazine specialist.

0 likes
magazines

Promoting the In Style belt giveaway

in_style_june08.JPGIt was a tough choice as to which title-with-a-giveaway to promote in the real-estate we have set aside for this purpose. Famous, Madison and In Style all have excellent giveways appropriate to their demographic.

We have decided to promote In Style and the free fashion belt being given away with the magazine for our counter offer. We made the decision based on sales in our store and our assessment of ease of impulse purchase of this at the counter.

Madison did not miss out, it is featured on a power end as part of an ACP Connections promotion.

0 likes
magazines