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

Author: Mark Fletcher

Thin computer magazines

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If size is a measure of health then I wonder about the future of computer magazines. What we have on our shelves today is Australian titles which are half the size they used to be two years ago.

The size of the magazines means they need less space and this is leading to a reduction in space allocation – our second time in a year.

The content content of computer magazines is changing too, morphing into a broader focus than their roots – in an effort to find new readers I guess.

It gives me no pleasure to say that I preduct we will see some closures in the computer magazine segment this year. Their traditional consumers are accessing more current information online.

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magazines

Early start to Valentine’s Day

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Even though Valentine’s Day is still two weeks away, sales are strong.  Cards, plush and gifts are all selling well.  Going out early with our display was a good move.  While we don’t embrace the season as much as they do in the US, we’re getting there – I am keen to provide a more complete environment through which people walk for major seasons such as Valentine’s Day.

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Greeting Cards

The future of newspapers

Thanks to Leonard Witt’s excellent pjnet blog I have been fortunate to find the following podcast, The Future of Newspapers, from San Francisco based public radio station KQED. The 51 minute podcast is fascinating. Australian newsagents should listen as should newspaper executives in Australia who publicly say that it’s business as usual for newspapers.

I am unafraid of the changes which are so evident in the distribution of news and information overseas. They present opportunities for newsagents to reinvent themselves and have more control over their business future.

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Newsagency challenges

Biggest Loser cookbook out now

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The Biggest Loser cookbook has arrived in time for the start of the new TV series on Network Ten so we’re featuring it at the counter.

While I am unhappy that we are not making traditional bookseller margin on this title, my goal is to sell the stock I have while interest is high and before payment is due on the stock.

Titles like this are a challenge for newsagents. They have a high price point, are challenging to locate and often do not receive the customer respect when placed in with magazines. hence our decision to feature it at the counter and try and move the stock quickly.

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Book retailing

More free training for newsagents

Below are the details of more (free) online training opportunities for newsagents using the Tower Systems software. The new courses on offer are:

Magazine Management Jan. 29 at 10am. This session will cover all aspects of magazine management; from Arrivals, Returns, Putaway Management and over/under supply. This session will be repeated several more times.

Re-Ordering 2pm Jan. 30 at 2pm. Learn how to make the most of the Tower software’s advanced reordering functions. Learn how to create an order electronically, send it to suppliers, then once the stock is in arrive it automatically without extra work.

Business Discussion: chasing magazine growth Jan. 31 at 11am. Join us for an overview of magazine performance by MPA category, suggestions on steps you could take to increase sales and discussion involving everyone on ideas they use in their businesses. A great free business building opportunity for all newsagents.

New Owner Training Jan. 29 at 2pm. Have you recently taken over a newsagency? Well then this session is for you. It is designed to give all new owners an overview of the software and its capabilities. We will cover all the things that new owners find challenging, from balancing registers to arriving stock.

Each session will run for between 60 an 90 minutes depending on questions and discussion. To book, please email bookings@towersystems.com.au.

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magazines

Australia Post leverages the monopoly

The government owned Australia Post retail outlet opposite my newsagency at Forest Hill was closed today.  Yes, they pick and choose how they interpret the Act of Parliament under which they conduct their retail network.

Today’s closure is arrogant and demonstrates the value of their monopoly.  An unprotected business could not close today.  No major shopping centre landlord would stand for it.

I am annoyed because I rely on Australia Post to draw people to our end of the centre.

if it’s good enough for an independent small business to carry the cost of public holiday penalty rates then it’s good enough for a protected government owned retail chain.

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Australia Post

Bit late for a diary

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We received more copies of the Australian Country Collections 2008 Diary today.  While I am pleased that they have delayed billing and have provided 33% commission instead of the usual 25%, it’s not enough.  For us to move these diaries we need to be offering at least 25% off.  The publisher ought to have provided this stock to newsagents at between 60% and 75% off.  This is what more mainstream publishers are offering for 2008 diaries now.  This scale out, without request by the newsagent, is an abuse of our retail network.  It is a good example of an unfair magazine supply model.

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magazines

Pick Me Up magazine confusion

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I had a customer ask which was the current issue if Pick Me Up – she was buying it for an ill neighbour.  It is frustrating having local and imported magazines with the same title and design – oh, an such a big difference in price.  No wonder customers get confused.  I’d prefer to be able to show the difference easily – maybe a sticker – local edition – at least something to help customers.

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magazines

Momiji dolls at the counter

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Further to my previous post this morning about displaying product at the counter, at our Frankston location we have a small display area right at the front of the shop, on the corner of the counter.

Sherie created the display Momiji dolls you can see in the photo – it’s an excellent display with the fan in the back and the silver base, framing the Momiji dolls well – better than my photo shows.

While we still have them where we first displayed Momiji dolls ten weeks ago, in the few days we have had them at the counter they have worked better.

Sure, it makes sense – the right product in front of people sells. The challenge is to manage the space, cycle product through and create a display with context.

We are successfully chasing gift sales in each of our newsagencies. This is as much a counter offer as it is an offer in the body of the shop.

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Gifts

A lazy magazine display

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Short on time last week and with or usual main counter magazine display stand in use elsewhere in the newsagency, we took the lazy approach and moved an old mini ACP Cookbooks stand to the spot next to the counter.

That was six days ago. A check of sales data today shows that the lazy move was good for the cookbooks.  Of course it was!  Location, location, location.

Yes, sales are up.  On Friday and Saturday I saw the stand work first-hand.  On each day, a customer came to the counter with greeting cards and while being served, reached across and bought a mini cookbook.  The sales kick we have achieved by moving the stand is greater than if we had done a pretty aisle end display.

Even though the stand is an ancient relic and is usually banished to the back of the shop, in the right place it works.  I’d say this is primarily because customers can see the full cover of each book.  Sure having the product in front of people is important as well.

Our commitment is to change our various counter upsell offers every week. This space next to the main register is proving to be very successful for magazines – clearly no matter how old or ugly the stand itself.  So, we’ll keep at it, moving magazines around, creating subject related featured which underscore our depth of range.

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magazines

Promoting Chinese New Year

Here is the first part of our two-part Chinese New Year promotion – we have most of our stock coming in this week.  In this initial display we have Chinese New Year cards, red packets and Tatts lottery gift pack ideas.

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The display is at our main lottery counter.  You can see the Herald Sun stand and then an ACP magazines stand to the right in the photo.

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Greeting Cards

Free DVDs and grumpy customers

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The Age and the Herald Sun each have free DVDs with the newspaper today – shows from the 2008 line-up for the nine and ten networks respectively. Each is a good promotion – a perfect newspaper tie-in.  My only beef is the grumpy customers who have their newspaper home delivered and come in to claim their free DVD.  Two in ten try and push ahead of others and demand the DVD as a right.  It’s a challenge some days.

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Newspapers

Energy saving for dummies?

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Hmmm, Energy Saving for Dummies and Water Saving for Dummies.  Do we really need these titles?  Here in Ausytralia the Federal, State and Local Goverbnments have provided considerable information on both subjects.  The energy companies, too, have provided considerable information.  Plus there are websites and other communication outlets connected to environmental groups and other community groups.  So, I wonder about the value of these $9.95 books, the production of which would have consumed considerable energy.  I think I’d prefer these titles not be distributed here.

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magazines

EveryBlock challenges local newspapers

Check out EveryBlock.  This is a new media website which embraces local information and knowledge in a way not seen before.  It could present a real challenge to the puff and spin I see in so many of the free weekly local newspapers.  It collates data from a range of sources and makes it accessible by address.  Check it out.  I hope EveryBlock makes it to Australia.  Thanks to Mark Hamilton for the tip.

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Media disruption

Pregnant wedding magazines

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We are playing into traditional society pressures by placing pregnancy magazine titles next to our wedding magazine titles.  Not that it matters but I was curious about what our customers thought.  I conducted a straw poll over a couple of days and asked four under 25 customers and four over 40 customers.  All the under 25s and one over 40 said it would be better if they were separated and thee over 40s thought they went well together.  Hardly earth shattering.  In a couple of instances my question led to a chat about other magazines and from that came valuable insight.  It’s always worthwhile talking with customers in the body of the shop.

Back to the pregnant wedding placement, we are going to think about how we can dilute the visual statement that one leads to the other.

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magazines

Magalog, fascinating!

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Cleaning up some papers this morning I found magalog, a catalogue I picked up prior to Christmas and kept.  It’s from The Health and Beauty Club.  The catalogue is in the style of a magazine and that’s what interested me.  Home Hardware, years ago, launched dogalog and still run with this today.

I like the magalog because I think people will keep it longer than a usual catalogue and could browse again and again.  It’s an interesting approach to marketing and pitches the business in a way which separates them from the pack.

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magazines

Dressing for Valentine’s Day

We are getting a good reaction from customers about our Valentine’s Day display at Forest Hill. With a big Hallmark bear on offer for one lucky customer we have a good driver for card sales. We have more plush coming in to complete the display next week.

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Greeting Cards

Smart thinking

On hearing the news of the closure of the Bulletin yesterday, Ben Kay managing our newsagency at Forest Hill and Simon Frost managing our newsagency at Frankston independently of each other whipped up signs promoting the last issue of the Bulletin.  They sold out.  Fantastic initiative.

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magazines

Respectful coverage

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We have tapped into the respectful approach Who has taken to Heath Ledger’s death and displayed the product at the front of the shop – but without the visual noise we would bring to such a display.

This issue of Who is a wonderful tribute, a keepsake for any Heath Ledger fan.  I am sure it will be a huge success.

I was wrong in my expectation that another weekly would come out early and publish today.

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magazines

Supanews / Angus and Robertson, one footprint

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Landlords like tenants with multiple formats, it makes for efficient leasing. The photo from Armidale says it all. Supanews on the left and Angus and Robertson on the right. They look like two businesses but are from the one corporate family. I’d expect them to be on the one lease and a good deal.

The competition challenge for independent newsagents in any shopping centre is considerable.  I’d expect to see more joint tenancy arrangements such as this in the future.

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Newsagency challenges

Strong movie based partworks

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The John Wayne Collection and Movie Musicals partworks series continue to enjoy good success, months after the first issues hit the shelves.

The sales patterns for these titles are different to what we usually see for partworks as customers are stepping in and out of the series based on the title of the film on offer.

The latest Movie Musicals issue – Chitty Chitty Bang Bang – is a good example. The film is a much loved classic and it’s not surprising to see people buy that issue who have not purchased any other in the part series. Our challenge is how we display these, long after the launch, so we get the impulse purchase based on a specific title.

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magazines

Smartcard ticketing challenges

I was interested to read this morning that the NSW Government has dumped its ERG Smartcard ticketing project.  Despite success of integrated smartcard offerings in some overseas cities, various projects here have had rocky starts.  Of interest to newsagents, beyond the issue of commission, is the potential of a new payment type.  These cards are like cash and can, if permitted by the issuer, be used for payment for anything from a newspaper to more significant purchases.  This is, in part, what interests me.  If commuters get used to using such a card while commuting then retailers on travel routes need to accept the card as a payment method or risk losing business.  It’s like Eftpos, the more barriers we put up on how people pay for something the greater the challenge to our businesses.

It will be interesting to see which state in Australia gets it’s integrated ticketing system up and running first.

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Newsagency challenges

The Bulletin magazine closes

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The Bulletin, the magazine for which Australia’s first newsagencies were created in the 1800s and Australians longest running magazine, is closing.  The current issue is the last according to the ACP Magazines’ announcement.  Given the link to the reason for which we were created, this is a sad day for newsagents.  Sure, the Bulletin was not a shadow of its former self.  It’s closure must give us pause to contemplate our own longevity as a channel – not in a doom and gloom sense but thinking about the future and the opportunities before those of us with the guts to seize them.

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magazines