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

Author: Mark Fletcher

Paper craft seminars show the way

The US National Stationery Show in the US, the big trade show of the year for stationery retailers, in May this year will feature a paper crafting (scrapbooking etc) seminar track, Gifts and Tablewares magazine reports.

“The paper crafting seminar track is designed to educate and inspire a broad cross-section of attendees, from veteran scrapbook retailers to social stationery shops looking to expand into this key segment,” said Patti Stracher, show manager. “Both groups will learn how to attract paper crafting enthusiasts, and generate additional revenue from this growing product category.”

The opportunity in in the paper craft / social stationery area in Australia would be similar to the US yet it is a category in which most newsagents barely dabble. We tend to look for suppliers to take care of the category for us. The successful operators I see manage the category themselves, dealing with several suppliers and providing in-store activities which draw in consumer.

Newsagents looking for a category around which they can build a healthier business ought to research paper craft.

Footnote: there is a paper craft / scrapbook event on at Caulfield racecourse this weekend.

0 likes
retail

News Ltd plays favourites

Management at the Adelaide Advertiser, the SA arm of News Ltd, is playing favourite with newsagent software companies.  They are pushing one locally developed software system.  Even though Tower Systems (the company I own) has 120 newsagent users, Advertiser Newspapers refuses to include us in discussions on IT changes they want in their relationship with newsagents.

Earlier this week they sent advice to newsagents about data extraction.  The information they provided Tower newsagents was based on a version of our software we have not sold in eight years.  No wonder it does not work.  I am suspiicous that this was a deliberate move by Advertiser Newspapers to support their pitch to newsagents to buy the local software.

Newsagency software has changed considerably in the last five years.   Only natuional solutions will prevail – because of the critical mass software companies need for viability thanks to the cost of maintaining compliant software.   Advertiser Newspapers can’t protect theirhome grown software by favoring them.  Blocking competition is not good for newsagents.

0 likes
About us

Carry on collection at newsagencies

carryon.JPGThe Classic Carry On Film Collection is the latest part publication in newsagencies. It’s a good series for the baby boomers – I recall many a cold afternoon spent watching these hilarious films.

We’re promoting the Carry On series right at the front of the shop. We’re setting up a DVD so people get a taste for the humor.

The only downside is the TVC – there is no mention on audio of newsagencies. Anyone listening to the ad would miss that the Carry On collection is at newsagencies.

0 likes
partworks

Statement re news to business

I was asked yesterday about my connection was with News To Business, the service spruiked by Brendan Geyer. I have no connection. I have never used News To Business and have no plans to use them.

The person asking me assumed there was connection because News To Business comes up of you do a Google search for Newsagency Blog. This is a paid ad – News To Business pays for the newsagency blog keyword. While I appreciate the compliment of their paid-for ad based on our coat tails, I wish I could stop it.

0 likes
newsagency marketing

Growing magazine sales

It’s in the long tail of magazines, the special (fringe) interest titles where we are seeing consistent growth. Magazines about railways, model railways, remote control, woodworking, airplanes, model planes, military history, family history and so on.

While the top selling titles account for volume, sales are more prone to fluctuation based on cover or other factors more often outside the control of the retailer.

In most of our range of special interest titles (see photo below) we are seeing consistent growth regardless of the cover. The growth is being achieved because of the broad range, good display and regular promotion elsewhere in the shop. No extra special effort, just good retailing.

mags_growth.JPG

I like special interest titles because they are a point of difference for newsagents. The volume is not there for the mass merchants, convenience stores and petrol outlets.

Our biggest challenge is displaying them cost effectively – with rent rising 5% a year and more we will need to fit more into less to maintain viability.

0 likes
magazines

Bill Express shares fall

Bill Express shares fell another 2 cents yesterday, closing at 9.5 cents. This is 46% lower than they traded eight weeks ago. There are 1 million shares for sale up to 13 cents. The majority of the buyers are looking to pay 5 cents or less.

0 likes
Bill Express

Help for POS Solutions users

My software company is interested in hearing from anyone with experience with the POS Solutions software who is looking for a career in software support. While POS users are migrating at a faster rate than ever before (six in three days so far this week), we’d like to be able to help newsagents who cannot get help from POS.

0 likes
newsagent software

Greeting cards in petrol outlets

cardss.JPGMaybe I missed this but it seems to me that more petrol outlets sell greeting cards now.

I have been in three petrol outlets this week and each had a corporate image stand with the range on display near the counter, next to the newspaper stand. The range was focused on top selling captions people are likely to buy on a day to day basis.

Newsagents currently account for around 50% of all cards sold in Australia. Historically we have been lazy with the category, leaving the merchandising and ranging to the card companies. Given the apparent growing interest in cards by other channels it might be time for newsagents to get more involved in this important and valuable category in their businesses.

0 likes
Greeting Cards

The magazine distribution centre

mags_special.JPGWith more newsagents operating more than one shop it is interesting to see how they manage magazines between the businesses.

One smart operator has established their own magazine distribution centre, centrally arriving stock and barcoding each copy prior to shipment. This reduces labour at the retail level. They centralize returns too. And they move stock between the stores based on sales.

For magazine specialists such local management, ensuring the right stock is in the right location for each sales opportunity, is essential.

It’s a technology driven enterprise from the sales counter to the back office to the central warehouse with all parts of the network of stores online all the time.

I’d expect individually owned newsagents to start to operate this way. It would provide a more efficient magazine account from the distributors and enable better sell through rates for titles. I’ll have some more to say about this opportunity for newsagents another time.

0 likes
magazine distribution

Following news on Twitter

Over the last week I have been using Twitter as my only headline news source. I am following news headlines from ABC, BBC and CNN. For tech news I am following ZDNet and gossip is Defamer.

For local news I wish I could follow the Herald Sun and The Age. Alas they are not up with Twitter. They should check out what the folks at the Star Tribune in Minneapolis are doing. I am following their news headlines and know all I need to know about what’s happening there.

Twitter delivers the headlines to my phone. In one click I can go to the story. Important news finds me as long as I have my phone with me. I don’t need to connect to multiple websites, Twitter sends what I have told it I want.

A couple of mornings I have headlines which make the story on the front page of the paper out of date – demonstrating the changing role of newspapers.

Of course newsagents would want publishers to join them and ignore this technology. In reality we all ought to embrace the opportunity this disruption brings. But first things first – newsagents ought to play with Twitter and see what the fuss is all about.

Oh, and the folks at the Herald Sun and The Age and other Australian newspapers ought to look at what they are doing at the Star Tribune. It’s smart. Every headline is a lure to the newspaper website where advertisements and other revenue opportunities await eyeballs.

0 likes
Media disruption

Tower Systems sponsors newsagent convention

Tower Systems has signed on as a Gold Sponsor of the ANF national convention this year.  We are also a Gold Sponsor of the QNF Queensland State Conference.  These conferences provide excellent learning and networking opportunities for newsagents – I am glad we are supporting them.  Hopefully newsagents will attend in record numbers and make progress toward unifying the channel.

More than 1,500 newsagents new use the Tower in their home delivery and retail businesses.

0 likes
Newsagency challenges

Selling blank cards

australiana_cards.JPGWe are having extraordinary success with packs of blank cards with images of Australian flora and fauna.

They are well priced and provide a good margin. The only downside is that they could hold back sales of premium blank cards. I’m not about to test this – we were out of stock of recently and many asked when we’d have more in.

They appeal to an older demographic and seem to be used more as notepaper than cards as such.

0 likes
Greeting Cards

Newsagents and reputation

The Daily Telegraph published a story last week about a newsagent demanding payment from a customer for three towels used to keep his head off the concrete floor during an epileptic fit.

The story does not read well for the newsagent.  She wants $60.00 for the towels plus $1.00 if they are to be paid for using a credit card.  She’s has reportedly pursued the epileptic for three months.

By association, this story reflects badly on all newsagents.

I don’t know the real story – given that the report was in the Tele I have doubts that it covered all the facts.

What I do know is that in customer service you’re only as good as your last contact.  One negative contact with a customer can undo a day of cheerful customer service.

I know newsagents who have gone to extraordinary lengths to help customers who have fallen ill in their shops. Their efforts won’t be reported by the Tele because they’re not news.  Why is it that one slip up is more interesting that fifty or one hundred hero stories? I guess we’d prefer to read the negative stories, they must sell more newspapers.

We are local businesses, more community connected than most.  Our decisions about challenges we face every day ought to be made within the framework of this community connection.  A mantra of, say, putting our community first, is under the shingle, on letterhead, on business cards and reflected in every decision.

While such a mantra may seem cheesy, it would guide how we react when faced with a challenge such as whether to charge for the towels.

0 likes
Newsagency challenges

Promoting quilters magazines

quilters_mags.JPGWe’re promoting quilters magazines in the display next to our counter this week.

Even though most of the titles are in sealed bags, they still sell here. On Thursday a customer buying something else noticed a new title which had just come in. I didn’t know you carried this. Not only did we win the sale we won a new putaway customer.

The photo on the left does not do the display justice – especially the small poster we created.

Our decision to promote the diversity of our range here each week is Long Tail strategy at work. It would be too easy and somewhat senseless to promote only top selling titles here.

0 likes
magazines

News Corp. faith in newspaper

Interesting to see reports Rupert Murdoch is bidding to purchase another newspaper – Newsday in the US.  While the strategy seems to be about controlling a competitor, US$400M is a lot of money for a newspaper.

We (newsagents) don’t do that.  We point at competitors and complain.

0 likes
Newspapers

Reinventing newspapers, reinventing newsagents

Newspapers are doing it tougher in the US than Australia with many dropping circulation and ad revenue at alarming levels.  We’re insulated here by a cost effective (for publishers) home delivery network, a strong national retail network and the natural delay of trends hitting our shores.   That said, newsagents should read Ted Leonsis’ 10 plan for reinventing the newspaper business.

I was first introduced to Ted ten or eleven years ago during a 3 year (part time) entrepreneurship program I undertook at MIT in Boston.  The Birthing of Giants program was organised through Inc. magazine.  The sessions were inspirational.  My recollection is that ted Leonsis was a visionary thinker, still is.  He helped shape the thinking of the class, to see beyond the challenge and through to the opportunity. If you read Ted’s blog post about reinventing newspapers you’ll see he has not changed – his proposals are bold and while others have suggested some before, his pitch is clear and compelling.

Leonsis’ ten point plan could apply to Australian newsagents.  It is relevant to my post couple of days ago about why newsagents should buy borders.  We will find our future by being bold and acting collectively.  Every day we act alone and with our eyes focused on the next stp0e in front of us is a day lost.

Publishers have serious challenges in the US and, soon, here in Australia.  They will develop solutions which suit them, as they should.  At some point, the solutions they will pursue will shift in core focus from our channel.  This is what we have to be ready for.

We need to be talking today about the relevance of newspapers to the newsagency of the future.

We need to be talking about the shingle itself.  Is newsagent relevant?

0 likes
Newsagency challenges

The view from Mt Wellington

I have been fortunate to spend a few days in Tasmania, taking a break and enjoying the sights. The most amazing sight in the south east region is the view on top of Mount Wellington, way above Hobart. Not the view down over Hobart but the view at the back, across territory which could be on another planet. It’s amazing.

mt_wellington.JPG

Looking at this view I realised that I was focusing too much attention on the foreground and missing the grandeur of the valleys mountains in the background.

I enjoy the perspective travel brings – business travel and personal travel. Every time I’m outside my usual routine and space I find myself thinking about work and all involved there in a different way.

Just at the brisk air on top of Mount Wellington clears your lungs, travel can clear your head and see a new road ahead.

0 likes
About us

Fighting clock watchers

Sundays and some Saturdays at Forest Hill, some retailers around us close early. Some ten minutes, others up to half an hour early. This sucks. We are at the end of the mall so people looking our way see these closed shops and because we are set back they don’t even walk down to see if we are open.

Businesses do not grow by contracting. If these businesses are slow toward the end of the day they ought to fight for business. We, those of us at this end of the centre, could do it collectively. This type of positive action is better than them just closing ewarly as they do now.

It’s frustrating because most don’t care, they are branches of national brands and the local staff are happy to get off early.

We’re thinking we might really pump up the volume of our sound system for the last half hour on a Saturday and Sunday, to luire people into what could evolve into a party. Our view is that we need to embrace the problem and fix it for ourselves.

0 likes
About us

Promoting Mindfood

frank_mindfood.JPGThanks to the folks at Network Services, we have been provided some excellent collateral to enable us to promote the new Mindfood magazine. This is the type of material I was referring to when I first blogged about Mindfood.

Since this is a title which could work in several locations, we have decided to go hard at our Frankston newsagency and promote the title at our main newspaper display. Watching customers approach the display shows it’s working in that the title is noticed. Every so often someone picks up a copy. We also used the newspaper location because every other magazine feature space was taken with another title being pushed.

Promoting new titles from independent or small publishers is a challenge. For newsagents to draw attention to the title we need help. That’s where collateral like posters and cover run-one are essential.

We have developed a one page strategy for new titles, regardless of whether sufficient collateral material is provided. The strategy does considerably more than placing the title on the shelf where the publisher or distributor requests. it engages us as retailers in a number of ways to get the most from the title. It also has some KPIs which, if not passed, lead to a decision to remove the title.

0 likes
magazines

Who needs a newspaper?

Over 300 newspapers, updates every 20 minutes.  Who needs a newspaper when you can access eufeeds.  Their tagline lets you know that they have all the news you could want – up to the minute.  Newsagents skeptical of the impact online could have on print ought to check this site out.

0 likes
Media disruption