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

Author: Mark Fletcher

Tattersalls vs Intralot and retail space

fhn_scratch_bay.JPGI was interviewed last night by Mark Hawthorne for his report in The Age today about how Tattersalls is treating its retail network over the handling of allocating space to Intralot. Jon Faine on ABC local radio in Melbourne today covered the Tattersalls / Intralot story from a different angle and interviewed a Tattersalls agent from Cheltenham.

Media coverage of the challenges facing newsagents and lottery agents is most welcome. In my own case, Tattersalls is demanding I follow a rule book which the company has conveniently ignored for the last five years. The space I have allocated to Intralot is space I have used for other products all this time. Now, it suits Tattersalls to dust off the rule book and threaten my livelihood and that of all stakeholders in my newsagency.

Silence from Tony Robinson, the Minister for Gaming in the State Government is deafening. Having created the challenges for small businesses, his government appears to care less about the business owners, their employees and the families which rely on them.

Commonsense ought to prevail. Tattersalls ought to have business rules which focus on our sales performance and not the real-estate we allocate. It suits me and them that I and my team do this.

The photo shows one of our scratch ticket bays this morning at Forest Hill. We only have two packs of scratch tickets left. Tattersalls has no new product for this and currently does not have Government approval for scratch ticket product. Why they demand we keen this space vacant for them without a revenue opportunity is beyond me.

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Lotteries

Network rewards tech savvy newsagents

Magazine distributor Network Services has joined other magazine distributors and decided to drop paper based magazine returns forms for newsagents with compliant software and business practices.  This move is most welcome.  It gets newsagents closer to genuine time savings from returns scanning.  The less newsagents hve to interact with the Network website for tasks their sofwtare can transact automatically through to Network the better.

The company has also announced a move to weekly returns from January 1, 2009 – again for compliant newsagents.

These moves reinforce the need for newsagents to have up to date magazine distributor approved software and that its use is based on compliant business practices.  The benefits for newsagents, beyond time savings, are more accurate allocation, faster credits for returns and better business data on which to make decisions.

All of this is further evidence that DOS is dead when it comes to newsagency software.

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magazine distribution

Magazine workshop for newsagents

mags_wshop.JPGI have put together a magazine workshop for newsagents which looks at retail and online trends and presents strategies newsagents can use to grow magazine sales. The goal is that by the end of the workshop each newsagent has an action plan of changes in how magazines are managed and marketed in their business. Most of the changes I discuss do not involve any capital expense and only a small investment in labour.

With magazines considered by most newsagents as a key point of difference they have over other retailers, I figured it was time for us to manage the department as if we believe this.

The workshop is free. I’m happy to present it to any group of fifteen newsagents or more. If you are interested in a magazine workshop in your area, please contact me.

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magazines

Fairfax launches online paper in Western Australia

Fairfax launched WAToday online newspaper for the WA market yesterday. WAToday joins Perth Now, an online paper launched by News Ltd last year and Perth Norg, a citizen journalism site service Western Australia.

Not so long ago a publisher wanting to enter the market would have needed printing presses and an expensive distribution infrastructure.  Today, the barriers are all but gone and new markets can be opened for little in the way of capital investment.

Newsagents ought to take note of what has just happened in Western Australia and what happened last year in Queensland.  While our channel is important to newspaper publishers, we are not part of their current expansion plans.  We have to make our own future, as it should be.

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Media disruption

Borders to discount magazines in UK

Borders is to discount magazines in its stores with a buy one get another at 50% off deal during Magazine Week in the UK.  I am not sure how I would react to that given that more than half magazine sales in most newsagencies are two or more magazines.  If it is genuine incremental sales we want we would need to do something like buy three and your fourth is free.

While Borders claims their campaign is the first discounting across all magazine titles, here in Australia, our Magazine Club Card launched in mid 2004 is the first.  It’s still running at Forest Hill where we started it as well as all newsXpress newsagencies where yeasr on year same store growth is considerably above the industry average.

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magazines

Lottery counter land grab

I have written today to Hon Tony Robinson, the Minister for Gaming in the State Government of Victoria in the hope that he can assist with a dispute over retail real-estate at our newsXpress Forest Hill location.

Tattersalls has told us that we must move the Intralot terminal on our counter or face not having access to Tattersalls product from July 1.  Tattersalls has made it clear that they will not accept any reduction in retail real-estate even though they have fewer products on offer from July 1.

The Minister, in a circular to all lottery agents, tells us to go to the Office of the Small Business Commissioner.  Based on poor handling of a complain last year I have no faith in that Office to serve the needs of my business within the time contsraints of a July 1 deadline.

Tattersalls should not penalise newsagencies like mine because they lost their monopoly in Victoria.  If they were smart they would work with us to esnure active promotion of their product across the whole of our business rather than acting like spurned lover hell bent on revenge.

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Lotteries

Bic ignores newsagents

Bic, the pen company, has ignored newsagents with their latest TV advertising. Their Brand Power ads promote supermarkets. Newsagents have been tremendous supporters of Bic. It is a pity the company did not return the favour and promote our channel when deciding where to place their marketing dollars. See the Bic advertisements at the Brand Power website.

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Newsagency challenges

Showing off the iPhone

The Associated Press’ Benjamin Mosse shows off Local News Network. Allows you to retrieve local news based on your location. Can also pull up sports, entertainment and business news. You can also check out pictures and videos from AP. You can also send in news tips and accounts of breaking news straight from your iPhone. Also free when store opens.

An entry from the SFGate live blog of Apple CEO Steve Jobs’ keynote today in San Francisco.  Hmm, local news based on your location.  Very nice!

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Media disruption

Legal threat against Bill Express

Page 23 of today’s Australian Financial Review reports about a threat of legal action against Bill Express by a group of newsagents organised through the NSW newsagents’ association. As I blogged last week, newsagent anger about Bill Express is not diminishing with time.

The legal move reportedly being taken by NANA is one of several legal fronts being pursued by groups of newsagents against Bill Express and other parties which may have played a role in getting newsagents to sign for the Bill Express service.

I understand that the ACCC is looking into the Bill Express situation as well as one or two state government authorities and another Federal authority. From what I understand, all are focused on who represented what and when to newsagents to get them to sign with Bill Express.

As newsagents trawl through their files, more are finding promotional material, articles and other documents on which they relied to sign up for Bill Express. In these documents, guarantees like the following on which I relied can be found:

Is the $210 Advertising rebate guaranteed?
Yes! The National Advertising Screen included in Package 3 includes a $210 rebate that is applied every month for the life of the agreement, as a guaranteed commitment.

This was promoted to me by Bill Express and by the Australian Newsagents’ Federation. Like many newsagents, I relied on this guarantee in making my decision.

While I am glad to see the AFR provide the Bill Express store more coverage today, I would like to see a newspaper undertake more complete reporting of the situation.

I would also like to see reporting of the current situation. Since February, the company has been unilaterally withholding around 30% of what would usually have been paid to newsagents for services rendered with the claim that the money would be used to promote the service. I have seen no evidence of any such promotion. I estimate that the company has in excess of $150,000 cash which would otherwise have been paid to newsagents but for the latest scheme the unilaterally imposed.

People wanting a summary of the Bill Express situation from a newsagent perspective ought to read by February 29 blog post.

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Bill Express

The future of e-paper

Computerworld has published an excellent article by David DeJean on e-paper. The future of e-paper is “excellent” because it is an excellent entry point for people new to e-paper, providing some good background material. Newsagents ought to read about developments around this technology in which several publishers have invested. The final paragraph summarises the economic case.

Overall, there is a feeling of potential about e-paper that’s fueled in large part by the size of the current market for publishing on paper. If e-paper grows from its current 0.1% of that market to even just 3% or 4%, said Peruvemba, “you’ll be looking at a $400 billion market.”

Eliminating distribution costs adds to the commercial appeal of e-paper for publishers. Instead of selling a new product every day, they sell recharge.

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Media disruption

Westpac hides US jitters

afr_june10.JPGThe front page to today’s Australian Financial Review newspaper has been trashed by an ad for Westpac bank stuck over a news story. The post-it note type ad is a great ‘get’ for Westpac as it pulls visual focus, like any good ad should. Everyone looking at the the AFR in a newsagency today will see the Westpac ad first.

Besides the trash caused by people ripping the ad off once the buy the newspaper, I am frustrated with the damage to the newspaper medium. Selling ads to cover news content speaks volumes about publisher commitment to news.

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newspaper masthead desecration

The importance of language

I flew to the Gold Coast today and due to poor weather the pilot aborted a landing.  In typical Virgin Blue fashion he didn’t call it an aborted landing.  He told us the weather looked rough, that we had plenty of fuel for another “run” or to head on “up the road” to Brisbane.  Announcements on other airlines would be less conversational and therefore more frustrating to the passengers. 

In our newsagencies we could learn from the Virgin Blue approach in how we talk with our customers.  We could find a more conversational style which focuses on the positive rather than negative.  This could flow through to our signs and other communications.  When you step onto a Virgin Blue plane you pass a welcome note from Richard Branson welcoming you onto Australia’s most on time airline.  When you step into a newsagency, including mine, there is no welcome, nothing unique, no personal note with a value proposition.

With the news we have to deliver  sometimes: late papers, short supply of magazines, not winning $58 million, no on a refund etc, we could find a Virgin Blue positive approach and maybe achieve a better outcome for our businesses.

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Newsagency challenges

King Island Newsagency

king_island_news.JPGI spent most of yesterday on King Island, a small island to the north of Tasmania, population 1,600 (and 6,000 cows) and home to the famous King Island Dairy. The photo is of the newsagency in Currie, the main town on King Island. Unfortunately it was closed by the time our group arrived but peering inside I could see it had the usual range of greeting cards, magazines, newspapers and stationery. It also had the tourist items you’d expect and local event notices on the door. Lottery products are sold out of the supermarket.

Walking towards the newsagency across from the street I was surprised that the only branding was the N newsagent logo. This logo was created by the NSW Newsagents Association (NANA) in the 1990s and taken over by the ANF association and rolled out nationally. The ANF launched a new logo at the convention on the Gold Coast two weeks ago – although I am not sure who will fund the roll out of the new logo.

But back to King Island, taking a look at most of the other of the retail businesses in Currie, the newsagency fits in. While they could go with bolder branding like the local IGA supermarket, the market size does not warrant this – Currie has a population of 900. It’s retail businesses are appropriately understated – business is more about the community than it is about the business. and the newsagents clearly fits in.

This newsagency is a good example of where national generic and or low cost retail branding is appropriate for a newsagency.

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Newsagency challenges

Marketing your newsagency

mf_book.JPGI was doing some tidying up yesterday and came across a copy of Marketing your Newsagency, a book I wote for D W Thorpe publishing in 1994. Thorpe published the Australian Newsagent & Stationer, the journal of record for newsagents through the 1980s and 1990s.

While not usually drawn to nostalgia, I did spend an hour leafing through the pages of Marketing your Newsagency – for the first time in at least eight years. I was surprised to read material relevant to the newsagency experience today. Of course, many retail marketing tips are timeless.

It was my comments about franchises which surprised me – I said newsagents ought to get together, re-brand behind a new name and with the disciplines of a franchise structure. While the challenges which existed in 1994 which led to me forming the view I put forward in the book remain today, groups of newsagents are responding and leaving others behind.

Some of what I wrote in Marketing your Newsagency is embarrassing to revisit as it reflected naiveté about some of the challenges newsagents faced at the time – I wrote the book two years before I purchased my first newsagency. However, it is what it is and for the most part, the marketing tips remain useful for any newsagent.

I might spend some time extracting the ideas which are genuinely useful today and repackage them in some form for the use of others. But that’s a project for another day.

I miss the folks at DW Thorpe and Australian Newsagent and Stationer.  It was good a good magazine.

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newsagency marketing

Intralot in Frankston

frank_ilot.JPGThe Intralot equipment was installed in our Frankston newsagency late last week.  The photo shows the current location – this will change when we undertake our shopfit and re-branding shortly.  Since this newsagency does not currently have Tattersalls we are not engaged in a real-estate dispute.  The space we are using was not previously being put to good use so the disruption at the counter will be minimal.  Also, from this location, we can easily sell out to the mall and to customers buying Tattersalls product from the kiosk nearby.

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Lotteries

Publisher launches online unit

The Washington Post Company has announced it will launch a new unit focused solely on online magazines. Fairfax and News here in Australia have made similar moves in the newspaper space in Brisbane and Perth respectively – creating online only products for new markets. These are smart moves as they reflect an understanding of how much distribution has changed.

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magazines

Eftpos offer for newsagents

The folks at St.George have prepared a flyer to promote the merchant offer for Tower and eziPass newsagents. This is the same offer subsequently followed by the ANF but not promoted by them.

stg.JPG

Many newsagents have already embraced these excellent rates. For the record, neither I nor any business with which I am associated is paid anything in relation to this offer. Such transparency is important given what has now transpired with Bill Express. Newsagents need certainty about the offers put to them so they can make a fully informed decision.

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Bill Payment

Microsoft chief predicts death of newspapers and magazines

In the next 10 years, the whole world of media, communications and advertising are going to be turned upside down — my opinion. Here are the premises I have. Number one, there will be no media consumption left in 10 years that is not delivered over an IP network. There will be no newspapers, no magazines that are delivered in paper form. Everything gets delivered in an electronic form.

A quote from Steve Ballmer, CEO of Microsoft in an interview published in the Washington Post June 5. While I disagree with Ballmer’s statement, it is a challenge worth thinking about and worth being debated by newsagents.

It troubles me that newsagents are not talking enough about media disruption. It is as if we are living in a vacuum. The internal communication channels which feed newsagents news about things affecting their businesses are all but silent on this.

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Media disruption

Synergy in the A&R Borders plan

The announcement yesterday to the NZSX by A&R Whitcoulls about their takeover of the Borders assets sheds some light on their plan:

A&R Whitcoulls Group Managing Director, Ian Draper, said that the Borders business is complementary to the Company’s existing assets, offering a different format from Angus & Robertson in Australia and Whitcoulls in NewZealand.

“Borders’ experience-based model invites customers to browse books,magazines, music and DVDs, with cafes in most stores. It’s a model which has proven popular in the local market, and targets a different demographic with its premium format and wide range of products.”

The transaction is valued at up to A$110 million and is expected to be finalised early next week.

“The acquisition creates a strategic footprint for the group which comprises different formats and provides a foundation for growth and innovation. We are pleased to bring these businesses together and excited about the opportunities presented by this transaction,” said Mr Draper.

“The combined experience, skills and scale of the enlarged Group will create a platform for an expanded and more diverse customer offering across a number of strong brands. The Borders management team have a demonstrated track record of innovation and will be able to make a valuable contribution to the development of the broader group”

Had newsagents established a newsagent owned public company commercial platform years ago as they had planned to do and had this been run on strict commercial terms, it could be newsagents making announcements of strategic expansion plans.  Smart businesses operate multiple formats which seemingly compete yet cleverly support each other.

The A&R Whitcoulls acquisition of Borders means newsagents must revisit their business plans.  I certainly am.

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Book retailing

iGizmo a hit in the UK

Dennis Publishing’s iGizmo ezine is a hit according to the numbers from the company, launching with 100,000 subscribers. iGizmo is for boys who love gadgets and consumer technology. It’s from the people who publish Monkey – a hugely successful ezine.

Think about it newsagents, two magazine brands and not a drop of ink or a sheet of paper involved. No distribution channel. No retailers. It surprises me that few in our channel talk about these developments. One day we will and with some interesting hindsight.

While I do not think that the Dennis Publishing ezine model will replace print titles in the next few years, it will slow launches, especially to the always-online Gen Y demographic. This is where newsagents and other stakeholders in the print model will feel an impact and why we need to be aware of the disruption caused by these new offers.

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magazines

Chat crossword titles

chat_june08.JPGThe Chat branded crossword titles are not good sellers in any of our newsagencies.  We are giving them a final chance by placing them away from the crossword section and with the Chat weekly magazine.  With our crossword category growing more than 20% year on year and these Chat titles going nowhere this latest move is their only hope of staying with us.

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magazines

4 Ingredients cookbook

4_ingred.JPG4 Ingredients is one popular cookbook, according to our customers. Every couple of days we are asked if we have 4 Ingredients in stock. The question leads to a sure sale.

Once we realised its popularity with our demographic we moved 4 Ingredients to the counter from our cookbook area to try and shake out more sales.  The success of this booksays something about word of mouth.

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marketing

Renovation magazines

renovate_mags.JPGAt our Frankston newsagency we are promoting renovation magazines at the counter. The stand carries twelve to sixteen different titles from the category – all titles which would not usually be promoted at the counter.The idea behind this type of display, besides selling magazines, is to showcase that we are a local business – as opposed to a corporate which does pretty and clinical display.

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magazines

End of financial year marketing

Here are some sales and marketing tips newsagents could consider in the lead up to the end of the financial year on June 30:

  • End of Financial Year Sale. Nothing too special or complex in this idea. Get together items which are slow movers, bring them to the front of the shop on a table. Pitch them with a healthy discount.
  • Grab a deduction Sale. Put together items for which a tax deduction could be claimed. These items could be certain magazines, business stationery, even newspapers.
  • Prepay and save. Invite your local business customers to prepay for newspaper pickup for months in advance or for photocopying in advance. These expenses can be claimed this year even though the services are rendered next year. There are tax Office rules around the value which can be prepaid.
  • Tax Pack sale. Newsagents give away Tax Packs for the Tax Office. Display these toward the front of the shop with a special stationery offer nearby.
  • Tax Time Clinic. Invite a local accountant or tax agent in for a session of tax advice (with appropriate disclaimers around the advice). They could sit at a able in your newsagency somewhere and take individual questions for, say, five minutes at a time.
  • Tax free lottery. Build a promotion of lottery product around the tax theme. Since prize money is tax free.
  • New Year party. Dress up the shop around June 30 and have a big old celebration. With streamers, poppers and helium filled balloons it could bring some warmth to an otherwise cold winter.
  • New Year resolutions. Setup a white board or some butchers paper and invite customers to write down their new financial year resolutions.
  • New Year coupon. Make up a small business card size discount coupon – 25% off greeting cards, 10% of a magazine … any discount you think will speak to your customer. Call it your Happy New Financial Year Discount. While most customers will not care about the new financial year, enough are sure to engage with your efforts around this.

There are plenty more simple ideas like these. The idea is to seize the opportunity to bring some excitement to the business. Subtly, these promotions remind your customers of your connection with the New Year – diaries, new financial books and other items people are likely to buy around this time.

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newsagency marketing

Sex and the city in newsagencies

Sex and the city is the hot movie this weekend. We now have four magazines with Sex and the city themed covers and, I am sure, more on the way. One of our stores is on the prowl for a mannequin to bring Sarah Jessica Parker to life in-store.

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magazines
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