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

Author: Mark Fletcher

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.

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Lotteries

The theatre of car magazines

car_disp.jpgThe photo shows the latest magazine category promotion at Forest Hill. 

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?

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magazines

The single title magazine display

hello_display.JPGI saw plenty of these metal display stands in London.  They are provided by publishers for their title.  Less than half the time they had the right title in the right display.  Outside of this compliance issue, I do question the efficiency of breaking one title out of the pack long term as one has to for these stands.    While this serves the publisher, I question whether it serves the retailer.  The stands I saw weren’t that retail friendly.  None of the frills we see in Australia in single title magazine displays.

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magazines

Jewish Living in Frankston

jewish_living.JPGWe have started carrying Jewish Living magazine in our Frankston newsagency. This may seem an odd choice for the Frankston demographic. We took the view that if represent ourselves as magazine specialists then titles like this are important to us. So, we now carry Jewish Living. We will watch with interest to see if it works over the next few issues.  The only challenge is – where to locate the title.

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magazines

Newsagency vacancy in Frankston

We’re looking for someone to join our Frankston team to help manage the magazine arrival work Monday, Wednesday and Friday.  The total hours each week will be around twenty.  I you know someone who is reliable and looking for a long term (i.e. more than two months!) role please have them email simonf@towersystems.com.au.

It is frustrating when you find someone good and they move on just when they get the hang of the intricacies of magazines.  While you cannot make someone stay if they have a better offer elsewhere, the labour laws are quite one sided in this regard. 

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About us

Paper vs. plastic for a magazine bag

marie_claire_plastic.JPGMarie Claire (UK) is getting in of the environmental act with this issue I saw at Heathrow airport.  The headline, This is not a plastic bag stood out, especially when near magazines which were in plastic bags.  It takes more to product an environmentally friendly magazine than using a paper bag to hold a magazine and promotional product than just a paper bag.  There’s the paper, ink and size to consider.  Twelve of the thirties copies on the shelf had rips in their paper bag.  It made the product look damaged.

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magazines

Displaying travel edition titles

glamour.JPGWith more magazines coming in travel edition size retailers and publishers need to work on better merchandising options. As the photo shows, even in the UK they are challenged by placing small format travel edition magazines into traditional fixturing. In store, most travel editions are displayed with the full size copies.

I’d prefer to try a travel edition display which supports the smaller size and is placed where the consumer interested in the offer is more likely to look.

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magazines

Ryman the stationers

ryman_uk.JPGIf you’re ever in the UK, be sure to check out a Ryman the stationers store.  This stationery chain has an excellent local small-store format.  As I have blogged here before, the stores feel local, independent right down to the handmade (using a rubber stamp) business cards they have at the counter (very clever).  It is only when you visit several in a day that you can see the corporate foundation of the business.

I understand the difference in retail in the UK to Australia, especially in comparing London to Melbourne or Sydney.  Back home we have space and tend to drive more to shop hence the proliferation of larger format stores in the stationery space – Officeworks, Ofis. 

The Ryman offer is fascinating, partly because of the stock they fit into a small space.  On first glance the stores feel cramped and therefore difficult to shop.  Soon, you feel so surrounded that there must be something here to buy.  I like the cramped feel.  It oozes range.  I’ve certainly some away from today with some ideas. 

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retail

A new way to display ink in-store

kinkos_sell.JPGThe photo shows how they sell ink at FedEx Kinkos in London. You choose the ink you want, take the tag to the counter and they get the product from the stock room.

The staff member I spoke with said they did this because of theft and to cut the time it takes to manage the ink stock. It makes sense, no one is going to steal a worthless tag. On the labour cost, keeping the stock in the back room reduces display time and space.

I am not sure I would go with this in a newsagency. There is something to be said for customers being able to see, touch and feel the products for themselves. Sure, theft will be higher but there are ways to manage for that.

Having the product on display in-store makes for a more impressive display than the tags you can see in the Kinkos display.

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Stationery

Music with your newspaper

moby_cd.JPGThere is irony in musicians using newspapers to distribute free copies of their work. Both channels (print and packaged music) are in transition as they face considerable disruption from new models. The Sunday Times today in London comes with a CD with 13 music tracks and bonus video. For Moby it’s a way of promoting his new CD, last night, and for the newspaper it continues their addiction on Sundays to giveaways.

Unlike in Australia, the CD is in the newspaper. It’s inside a sealed plastic bag packed with a magazines and brochures. There there is a second plastic bag with other parts of the newspaper. In all, The Sunday Times is made up of seventeen inserted items. This must be an awful problem for newsagents and other retailers as well as those delivering these over-sized products.

The Sunday Times is not the only oversized Sunday newspaper here in London. Most are as bloated. It is as if they are fighting relevance by being fat, thinking that size equates to value. Even before I saw a Sunday paper today I had more up to date news on my phone and from surfing a couple of news websites. The stories in print were out of date.

While a Moby CD is nice, I doubt it is enough to get enough people to buy a newspaper. The long term solution to that can be found in core content alone.

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Media disruption

Displaying newspapers full face

uk_super.JPGThis is a typical newspaper display in London supermarkets from what I have seen here today.  The display of the entire front cover of newspapers on offer makes for a good display.  I don’t see this working in a newsagency with considerable volume – restocking would be too expensive.  But in a convenience store or a newsagency with low newspaper volume it could work.  I’d also look at trying it as a co-location strategy, maybye on a stand I can move around the shop but still keeping the traditional flat stack.  The stand would not have to be that wide given we have fewer dailies than here in London.

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Newspapers

Promoting magazines in the UK

Check out the video produced by the Periodical Publishers Association in the UK to promote Magazine Week.

Magazine Week (Sept. 29 – Oct. 5) this year links with The National Year of Reading in an effort to boost literacy.Magazine Week is a great initiative. It boosts attention on magazines and the literacy connection underscores value beyond guilty pleasure.

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magazines

How we do business

I have been in communication with a business in India and considering purchasing some products from them. It is interesting to experience different business customs in emails and on the phone. A good example of this is an email I received from this supplier yesterday. It was a reminder to consider their products. However, before they got down to business they had a Mother’s day message:

A man stopped at a flower shop to order some flowers, to be wired to his mother who lived 200 miles away. As he got out of his car, he noticed a young girl sitting on the curb sobbing. He asked her what was wrong and she replied , I wanted to buy a red rose for my mother. But I only have 75 cents and a rose costs 2 dollars. The man smiled and said, bœcome in with me, I’ll buy you a rose.

He bought the little girl her rose and ordered his own mother flowers. As they were leaving , he offered her ride home. She said, yes please, you can take me to my mother.” She directed him to a cemetery, where she placed the rose on a freshly dug grave.

The man returned to the flower shop, canceled the wire order, picked up a bouquet and drove the 200 miles to his mother’s house.

There is a sensitivity in how business is conducted in some countries which makes me pause some days. Sure, I’ve been sent similar emails to the one copied above, but not by someone I am discussing business with…

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Uncategorized

Two approaches to promoting Good Health

mag_card.JPGIn our Frankston store we have displayed Good Health magazine next to one of the Mother’s Day card displays we have in store. We co-locate Mother’s Day cards to drive sales and we wanted a non-traditional add on gift. hence the decision to display Good Health. We know from the demographic buying the magazine that it is a good fit. We have a promotional table with Mother’s Day gifts nearer to our main card display – the display in the photo is right to the front of the store and is designed for rushed shoppers.

At our Forest Hill store we have Good Health displayed at our counter, in the position reserved for titles with what we consider to be good free gifts. The display in the photo was put up yesterday.

good_health_may08.JPG

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magazines

Powerball almost sweet

pb_may08.JPGSince my posts here about the $40 million oZlotto jckpot several newsagents have reviewed their numbers and have contacted mt to agree that a jackpot above $20 million is when significant traffic and sales growth starts. The Powerball jackpot this coming week, while good, is one we hope does not go off.

If it does not go off the jackpot will reach $30 million next and then we retailers in for a good time. that said, we’re pushing the $20 million jackpot hard.

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Lotteries

Bill Express’ BOPO platform down

A customer loaded their BOPO card here in Australia with cash. Their friend overseas tried to withdraw cash from the BOPO account, as they have done previously, without success. Several calls later, the customer has been told by BOPO representatives that the platform is down. This is just another challenge for Bill Express – the BOPO operation is a subsidiary of the company – in what is a very difficult time for the company.

UPDATE: The withdrawal has now worked. So, the customers remain nervous but are happy they could access their cash once again.

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Bill Express

Running out of instant lottery tickets

In the Sunday Age on the weekend there was some poor reporting about the arrival of Intralot and their take over of some soft gambling products in newsagencies and other businesses.  Change can be difficult to navigate.  The key is to remain focused on the longer term goal.  Worrying now about short term situations will waste too much time.

We, newsagents, Intralot and Tattersalls are navigating moving from a supplier who has owned the space for more than 10 years to someone who is just setting up in Victoria.  All sides need to be accommodating.  All sides are progressing the issues involved.  More complete reporting by the Sunday Age would have uncovered this.

If you’re a regular here and are surprised by me saying I am looking forward to Intralot, I genuinely am.  I’m a pragmatist.  I was against them getting approval from the Government because of the threat to moving lottery sales outside the newsagency and small business channels.  Once the decision was made it was time to move on.  Now, I am excited by the opportunity the change affords us.

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Lotteries

Who TV campaign

It’s great to see Pacific Magazines getting behind Who magazine with a major TV campaign. This gives us something to play in-store to draw attention to the title and connect with what consumers will have seen on TV.

Who is an important title not only for the product itself but also its Friday release. This drives additional weekend traffic.

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magazines

Great counter up-sell

cheap_upsell.JPGDogs and cats can sell anything. Take these tiny pads we have at the counter. At $1.00 each they are more valuable than any candy and they sell like candy – great stock turn, great GP. While bigger ticket items can be more interesting, these loose-change items can provide a better return.  While it may seem odd to take time to write about small cheap pads in a newsagency, the reality is that the return achieved makes them valuable and the success worth sharing.

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retail

Green office products

OfficeMax in the US has announced that they will carry a range of “green” office products from Terra Cycle. Made from recycled materials, these products are as good for the OfficeMax image as they are for the environment. The story of getting good media attention in the US.

In Hong Kong last week I noticed several stationery products suppliers offering green ranges. These products are available to us.

This is a space in which newsagents should be playing – not only carrying green stationery and home office products but talking about it in the media as OfficeMax in the US has done this mast week. We should lead on this in Australia.

Plastic bags are not the only environment related issue for retailers, it’s about the products we sell. We can demonstrate leadership fropm our shop floor through the choices we provide consumers.

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Environment