Selling magazine subscriptions
Through eziPass, we can sell subscriptions for 4X4 Australia, Australian Gourmet Traveller WINE, Australian Gourmet Traveller, Australian Table, Australian House & Garden, Australian PC User, Australian Personal Computer, Burke’s Backyard, belle, BlueWater Boats & Sportsfishing, Bulletin, Cleo (Australia), Caravan World, Cosmopolitan (Australia),Disney Adventures, Disney Girl, Dolly, Good Medicine, HMG, Harper’s BAZAAR (Australia), Inside Cricket, Men’s Style, Money Magazine and Madison in our newsagency.
While we can sell these magazine subscriptions, we are yet to work out how and where we make the pitch to our customers. We don’t want to pull focus from the physical product yet we want to get the gift subscription sale – especially where the gift recipient is a long way from our business. So, we are creating some marketing collateral for use in-store to try and get these sales without losing our over the counter business. It’s a fine line.
Of course, we could just not sell these but that would be us putting our head in the sand – customers want magazine subscriptions for themselves and as gifts. They will buy them from us or somewhere else – I’d rather get the sale if I can.
Two newsagents close their doors
Two newsagents have advised their colleagues in a public forum in the past week that they are shutting up shop. Increased rents and operating expenses in a business with fixed prices and margins are among the reasons cited. While diversification can help address these challenges, for many newsagents it is not an option in their location.
I’d like to see newsagent suppliers, industry associations and others invest serious effort into this challenge of newsagents closing their doors and exiting the channel.
The shrinking of the newsagency channel was a predicted outcome of the decision by the Federal Government in 1999 to deregulate the distribution of newspapers and magazines. The government reduced the viability of newsagencies with their decision yet did not offer any financial support for families – to allow them to exit with dignity.
The Federal Government put around $65,000 on the table for each pharmacy which closed as a result of their competition based decisions in the 1990s. Nothing for newsagents. They stump up cash for auto workers, farmers and others when circumstances make life tough. Nothing for newsagents.
There are newsagent families doing it tough because of the circumstances created and permitted by the government in 1999. While they deregulated the newsagent side of the channel, they did not address the supplier side. Newsagents continue to be treated as if in a regulated environment. The compliance costs are high with no genuine reward for above and beyond effort. In other competitive markets there is reward for effort, not here. This is one example of how deregulation has not served newsagents fairly. There are plenty of others.
I am not against deregulation. I accept that it was necessary. However, I would like to see it implemented fairly. I would like to see newsagents be given greater competitive opportunities. I’d like to see them permitted to use their collective assets to cut operating costs as their suppliers have done.
Newsagencies face rental increases of 5% a year, labour increases of around the same. Unless we can negotiate terms which provide business like flexibility and have mechanisms through which we can cut costs from the supply chain of core products like magazines and newspapers, more will reduce their commitment or exit altogether.
Suppliers ought to take notice of the stories of those exiting the channel. There are lessons to learn, for the future. An open debate about these issues is essential to our collective viability.
Barnes & Noble to sell digital mags
The giant US Barnes & Noble retail chain has teamed with Zinio to sell digital magazines alongside print editions of the same titles – from its corporate website. The company press release claims:
BN.com will sell subscriptions to over 1,000 magazine titles, available in both digital and print formats, at prices up to ninety percent off newsstand cover prices. Digital subscriptions will be available within minutes of purchase for viewing on desktops and laptops. In addition, more than 12,000 back issues of hundreds of magazine titles will be available digitally for purchase as single copies.
This move makes sense for any business calling itself a magazine specialist.
More music cards from Hallmark
It’s great to have access to these new large music cards from Hallmark. Music cards represent a rapidly expanding segment of the greeting card market and these large cards will help develop that expansion. I wish we had them sooner.
While we are getting offered plenty of music cards from suppliers outside the mainstream, I’d prefer to build this segment within our existing brands.
The cards add to the theatre of retail because they play when people open them to have a look. I reckon this acts as a theft deterrent too – so I’m happy to hear people opening cards all through the day.
The Powerball target
We have set a Powerball sales target of a 50% increase on last week. If we reach this there is a bonus for each team member working more than a couple of shifts in the week.
While Tattersalls wants us to increase our sales as much as possible, without a specific target the goal is vague. By declaring the 50% target, we know specifically what we are working toward – with every sale.
Goal setting is important in retail, especially in the lottery category where a small but consistent investment of personal effort can easily achieve incremental sales.
Promoting Money magazine
Money magazine is the title we are featuring at our counter this week. With the free Taxstar on the cover and given that money as a topic is in the news (fuel costs, interest rates etc) the timing for a display is right. That and the fact that Money appeals to a broad demographic and nt just those who actually browse the business and finance category.
While a display like this has a cost beyond space of the colour cover copies it’s worth the investment. I do wish there was an easy way for us to advise a publisher that we were going to do a display like this and could order a dozen colour cover run ons or delivery is a few days. This would help make the display look more professional.
Our last display, Good Health, led to a sell out in less than a week.
Advance for Top Gear
We are giving prominence to the BBC Top Gear magazine in advance of the launch of the Australian edition by ACP Magazines in a month or so. This week, the imported edition of Top Gear has been featured above the Herald Sun. Next week, it will be another high profile location. Our goal is that when the local title launches, consumers in our area will think of us ahead of other outlets because they will have seen the title in our shop previously.
Bill Express fall out continues
I have been told that a company called Loyalty Direct Pty Ltd terminated the services of 35 employees on Friday of last week without redundancy or accrued benefits paid. I have also been told that another group of Loyalty Direct employees were terminated and immediately offered contracts with a business called Payroll Express which provides the same services as Loyalty Direct.
Loyalty Direct is registered at the Eaglemont address of Bill Express’ Head Office. An ASIC search shows that Loyalty Direct is under “external administration and/or controller appointed. My understanding is that Loyalty Direct is a private company delivering some services to On Q and or Bill Express. I am not able to verify the location and ownership of Payroll Express.
I note the irony of the Loyalty Direct name.
Party goods
We decided to have another crack at party goods brought in the range from Alpen just over a month ago. We’ve placed this display behind our main newspaper stand, next to our card department. Sales are good, generating a good return on the space and sock investment.
The only downside about the move is Alpen themselves. They have refused a direct account saying they want newsagents to go through a wholesaler. This is after we agreed to their minimum order value and we explained that we wanted more of their range than we could easily get through a wholesaler. Their refusal to grant a direct relationship hs us looking elsewhere for party goods.
Retail is tough. We need to cut costs out of the supply chain. This is why direct relationships are important to newsagents – they provide us the best opportunity of reward for effort.
Office Depot, Google team on small business
I was interested to see Office Depot and Google have teamed up to help small businesses use online tools in the US. It extends the reach (and relevance) of each company into the small business space.
Pricing the business
We have decided to put a price on the Forest Hill business. After a few months of it being listed we have found that people are reluctant to look at the numbers and make an offer. They prefer a price as a starting point. This says something about how newsagencies are purchased. It also says something about tradition I guess.
I am considering the acquisition of a software company (not in the newsagency space) and in my research I found that many software companies for sale were not listed with a sale price. Prospective purchasers are expected to review the numbers and make an offer. This is the approach I expetced to follow for the newsagency, to let the market find its level
Zoo Weekly tops 500,000 readers
Zoo Weekly has posted stellar readership figures – 500,000. ACP says it’s Australia’s most widely read men’s magazine.
We have found Zoo Weekly works well from the stand next to our main newspaper display, as shown in the photo. While also we have it around with our mens and sports magazines, the newspaper location works best.
With the title posting an 8.5% year on year circulation rise, we (newsagents) need to take more care with Zoo. Leveraging off its above average growth ought to make further growth easy for us.
Big boys toys magazine promotion
The team at or Frankston store have gone wild in creating their BIG BOYS TOYS magazine display. Surrounding the stand with Street Machine, Motor, Wheels and other magazines, they have stuck on models of toys – cars, motor bikes, boats … all manner of big boys toys.
Our approach to this type of display is evolving – we’re chasing as much fun in creating the display as we are aiming for from the customer reaction.
Landlords price themselves out
I am aware of four new or extended (major) shopping centres which do not have a newsagency. I am sure there are more than these four. In each case, the landlord has offered the space to a cast of prospective newsagent tenants and each has said no. In two cases, the newsagent prospects went back and said no to a traditional newsagency but yes to a hybrid model which pursued a higher than the usual newsagency GP.
Landlords need to be flexible with the definition of a newsagency otherwise they will find their centres left without any reasonable representation of a newsagency. The days of the traditional newspapers, magazines, cards, stationery and lottery offer are fading. Like all good retail, our model is changing. Now if only landlords would allow that to happen.
Supanews blog
Corie and Tammy Schwarzl have started a blog recording their side of the challenges they have had with Supanews.
New stationery supplier link for newsagents
Wilson Stationery and Tower Systems are proud to announce the a significant development for newsagents in the stationery category in decades.
Thanks to the new embedded link between the Wilson Stationery IT platform and Tower Systems’ software, Tower Newsagents will soon have access to a stationery supply model which saves time and cuts business costs.
The new Wilson / Tower software interface facilitates more efficient placing of orders, receiving invoices, filling back orders and managing stationery overall.
James Golden, Managing Director
Mark Fletcher, Managing Director of Tower Systems said “As a newsagent myself I know that stationery is a tough category. What we are announcing today is more than a new IT link, it is a new way to manage stationery in a newsagency. Newsagents can expect to sell more stationery and make more from it.”
The Wilson Stationery/Tower initiative has passed comprehensive acceptance testing and is now being rolled out to selected newsagencies for live use.
FOR MORE INFORMATION: Mark Fletcher (Tower Systems) 0418 321 338; James Golden (
New sales benchmark study released
Click here for a copy of the latest benchmark study I’ve done looking at sales data for newspapers, magazines, stationery and cards in 89 newsagencies in the eight months to January 2008 compared to the same eight months a year earlier. The results of the benchmark study shows:
- Newspaper sales fall 4.8% in the city and 3.51% in the country.
- Magazine sales fall 7.5% in the city and rise 1.2% in the country.
- Card sales increase 3.9% in the city and 4.8% in the country.
- Stationery down 6.3% in the city, strong in the country – up 5.2%.
The benchmark study, the third and most comprehensive conducted by Tower Systems, is a possible indicator of consumers migrating from traditional paper based news and information sources to online. There were indications of this in previous studies but the one month period was not enough. This study, covering an eight month period shows an established fall in sales.
The purpose of the benchmark study is to inform newsagents about trends across their channel so that they may make more informed business decisions about future product mix, floor space allocation and the viability of some supplier relationships.
Yarn from old newspapers
Greetje van Tiem, a graduate from Design Academy Eindhoven, presented a project that turns old newspapers into yarn that can be woven into a fabric. One page results in 20 yards of twine.
Staples revises Corporate Express offer
Corporate Express has said it’s not happy with Staples’ revised offer. My interest in this courtship by Staples is the possible implications for Australia. Staples arriving here, through CE, would considerably change the stationery landscape.
Competing with ourselves
I’ve been reading the latest Tattersalls rankings with interest. While it is good to compare your sales with others around you, it’s better to compare against your previous rankings. I think of most business people as competitive and these regular sales rankings, benchmarks really, fuel that competitive streak.
Now if only there was a stretch component to this, bonus revenue for above average performance. This would make the additional promotions, displays and other over and above activity which gets lottery outlets performing above average. Sure there is additional commission made from additional sales but this does not make us see the additional sales as something to work significantly harder for.
We are a sales channel. rewarding us as a sales channel would see more newsagents going the extra mile and competition heat up on the regular rankings reports.
The more newsagents are treated as business people and only as bsiness people the more we will act the part.
The theatre of car magazines
The photo shows the latest magazine category promotion at Forest Hill.Â
This display is brilliant retail theatre. The red and blue lights on top of the display of car magazines flash. In the detail around the side are iconic images which connect with cars and those who love them. You notice it from the moment you enter the shop.
Jason and the team conceived and executed this display in-house. There is some competition emerging between Forest Hill and Frankston on these in-house displays.
The only downside is the battery use of the lights – they’re not the most efficient in the world but at $2.95 a light what can you expect?