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

Author: Mark Fletcher

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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magazines

Newsagency performance

fhmay08.JPG January-May at Forest Hill looks good compared to January-May 2007. Number of sales is up 4%; Average sale value is up 16% – as a result of selling more items and some for a better price. We focus on traffic, items and margin – nothing smart in that.

While of magazines are up 8%, we are relying less on this category thanks to expansion of Ink and Toner (up 63%), Art (up 130%), Books (up 247%), Bill Payment (up 31%) and Western Union (up 47%). Some of these are off a low base – art for example. The common theme in growth departments is customer service. Where there is a higher component of customer service in the sale, our sales are up.

This analysis is important to us because we are our key competitor. While this should be true for every newsagency, that I blog here so much about what we do it is important to see that it is working.

There is some not so good news in the numbers: Newspapers are down 3%; Stationery down 5% and Confectionery down 7%. Stationery is the department we accept the most responsibility for. I’d note, however, that stationery sales are low and the 7% is under $5,000 in revenue.

Many newsagents I know look at their numbers once a year when the accountant has done the figures. Any good point of sale system can produce the kind of comparison I use in seconds. It’s essential to good newsagency management.

While the growth we are tracking is good, it is soon eaten up by annual rises in wages and rent. These days we need to innovate just to cover the growing cost of doing business.

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About us

Vic. newsagent anger over Bill Express

The phones have run hot today following the announcement of a newsagent only meeting in Melbourne this Thursday, June 19, to discuss Bill Express. The most common feedback is – at last newsagents are doing something. Some newsagents who cannot make the meeting are pledging an amount they are happy to contribute to independent legal representation.

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Bill Express

Victorian newsagents meeting re Bill Express

A newsagent-only meeting about Bill Express has been organised for Thursday of this week. The purpose of the meeting is to provide newsagents with information and a forum through which a course of action can be considered. The meeting details are:

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

The planned agenda for the meeting is:

  1. Update on Bill Express’ current situation.
  2. Update on action being taken by NANA, QNF, ANF and other groups of newsagents and consideration of whether joining any of these is appropriate.
  3. Discussion about the costs, risks and possible outcomes of Victorian newsagents commencing their own, independent, legal action.
  4. Likely cost, structure and timelines of group or class legal action.
  5. A vote on a resolution to establish a trust fund for the purpose of briefing legal counsel to advise and, if considered appropriate, commence action against Bill Express and any other party considered to have a case to answer in this matter.
  6. Vote on a steering committee to liaise with legal counsel if point 5 is passed.
  7. Discussion and vote on timelines newsagents require from the steering committee.

The meeting is anticipated to run for 90 minutes. While everyone has their own stories about Bill Express, this meeting will be focused on achieving group wide consensus and moving forward collectively as quickly as possible on the best outcome for newsagents.

As this is a newsagent only meeting, attendees will be required to register on arrival.

Newsagents are asked to bring to the meeting photocopies in a folder marked with your details evidence which we could provide to a lawyer should the meeting decide to proceed: Bill Express related agreements, promotional literature, of notes of conversations with anyone who recommended Bill Express to you.

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.

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Bill Express

Pitching the news weeklies

weekly_news.JPGWe pitch Time and Newsweek with our newspapers for at least a couple of days a week. It is real hit and miss though. For years sales of these and other current affairs titles used to be consistent. Now, with their content available online, sales are cover driven – hence our placement above our two home-town daily newspapers.

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magazines

Promoting New Idea

ni_june16.JPGNew Idea comes with a free pack of breakfast cereal today include the magazine, making it quite bulky and difficult to display in traditional fixturing.

We are using this as an opportunity to place New Idea right at the front of the shop and to help us out with a display issue – we can;t fit all the stock on our shelves as would usually be the case.

Note the display unit – it’s now seven months old and is still holding up well.

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magazines

Growing Met ticket sales

met_tickets.JPGTwo of our newsagencies have recently started selling Met tickets – the tickets used for public transport here in Victoria.  This move is part of the advance work for retailers who plan to sell Myki cards and top ups.  What is intresting to me is the sales growth in Met tickets in each newsagency.  Without any serious promotion, sales have grown quickly in a short time.  More than 50% of the time tickets are sold with other items.  This adds to their efficiency and makes the micro margin easier to digest.

Retail as being about balance.  It is up to us to drive sales of higher margin items to Met ticket customers.  the same is true for lottery sales, bill payment and mobile phone recharge.  While I could easily refuse small margin service type items, my view is that we are better off with them and the traffic they bring than to risk losing the traffic altogether.  I appreciate that this means we may be abused.  To counter that we work harder at making the most of it.

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Newsagency challenges

Welcome to Gypsy Rose May

gypsy_rose_may.JPG The extended Tower Systems family grew today with the arrival of Gypsy Rose May, a second child for Simon May, our Technical Services Manager, and his wife April. Gypsy is a welcome sister for James. Born this morning at 9:41am, Gypsy weighs 3.2Kg and measures 47cm. Gypsy and Mum are well. Dad is over the moon!

Apologies if you read this at the Tower Blog already.

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About us

Missing Luke

luke_corbin.JPGHardly a day goes by at Forest Hill without a customer asking how Luke is doing.  They’re referring to Luke Corbin who left to teach English in Vietnam and travel the world.  Luke managed magazines for us at Forest Hill for two years, putting him in touch with most of our customers over that time.  He juggled near full time work with studies at LaTrobe University.

In retail, you are only as good as your last customer service contact.  Luke was exceptional in the eyes of our customers.  They are genuine in their interest in his travels and whether he will return.  Judging by his blog, Vietnam is proving to be everything he hoped.

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Customer Service

Being smart with partworks

columbo.JPGYears ago I saw that partwork titles were an opportunity for newsagents and pursued better management tools within our Tower Systems software. While the road has been occasionally rocky due to supply side issues, we have exclusive proprietary software which helps newsagents increase the sales of partworks, better manages the challenges and nurtures happier customers. This is not sales spin from the owner of a software company, no, it’s how I see it in my own newsagencies.

Partwork customers are efficient customers for a newsagency, considerably more so than any other magazine customers. I discovered this in our first basket research eight years ago. Partwork buyers are at least 33% more likely to purchase other product in your newsagency. Once I had that data it was imperative we help newsagents who want to drive better businesses to better manage the category. Now, with our exclusive partworks tools we have newsagents pulling customers away from other newsagents who see partworks as a chose they would be happier without.

Partwork publishers in the UK, their Australian agent and local magazine distributors like what we are doing. This is what helps us produce better outcomes in the partworks category for newsagents using Tower Systems software. It will drive further changes this year as we stay ahead of the game chasing better outcomes for newsagents who get behind the partwork opportunity.

There are no other magazine titles advertised on national TV where newsagents are the exclusive retail outlet. How many other suppliers advertise our channel like that? While some newsagents complain that we are used to drive subscription sales, the sales numbers and profitability of partwork titles in my newsagencies and others I work with is proof that the current model works – if you drive it hard and with the right technology at the store level.

We are business people and we need to run our newsagencies as business people. Partwork titles are an excellent business opportunity. Over the next month or so we will see Shrek, Dora Dress Up and Go, and, the Australian Movie Collection. Each one of these is an opportunity to connect with new customers because our newsagencies are known as the partwork title specialists in the area. Each new customer brings new opportunities.

Take the new Columbo partwork series. We sold out of issue 1 and have more on the way. We expect that between 5 and 8 regulars will emerge from the initial promotion. Multiple the value of their sales and the add on business and you can soon see the importance to the business of well managed partworks.

If this blog post reads to you as an advertisement, it is. I am proud that we are able to use the software we create to give newsagents a competitive edge. It is a competitive market after all.

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magazines