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

Author: Mark Fletcher

December benchmark project

Following success of the November benchmark project I have decided to run one for December for Tower Newsagents.  To participate, please send a Monthly Sales Comparison report: tick the box (lower left corner) to exclude home deliveries, set your first date range (on the left) to December 1, 2007 to December 31, 2007 and the date range of the right to December 1, 2006 to December 31, 2006.  Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au.

If you have switched your newsagency to the MPA magazine categories, and I hope you have, I’d like a second Monthly Sales Comparison – this time for the magazine department and with the category analysis ticked (lower right corner).

I’d like to complete the benchmark by the end of this week so reports within the next two days would be appreciated.  Once December is done I’ll conduct a similar study for six months to December 31.

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magazines

Can’t see Marie Claire

marie_claire_glasses.JPGNewsagents who stack the latest issue of Marie Claire into their shelves will obscure the title because of the free sunglasses stuck to a bit of cardboard inserted into the magazine. One alternative is to remove these and have them behind the counter – but you lose the in-store promotion opportunity and lump in extra labour to manage this and space requirements to store the sunglasses. Ugh. Damned if you do, damned if you don’t.

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magazines

Not another computer magazine!

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Well, it’s not a magazine, more like a book but distributed as a magazine.  Computers, Windows and the Internet has out of date content.  By any measure, it is useless – except for the distributor and publisher who unlock cash from newsagents given that we pay for it six months before it unsold copies are die to be sent back.  This title is a con and the folks at NDD know it.  It should never have been published let alone distributed.  Last year we returned everything sent and this year they increased our supply.  Yep, a con!  Sure we can early return – but it has come in too late for that this month so we’re out of pocket for at the very least 30 days.

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magazines

Welcome back ACP

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It’s good to finally receive some marketing material from ACP Magazines’ Connections newsagent in-store marketing program. I wonder how many newsagents started using their Connections aisle ends or windows for promoting other product?

Publishers need to realise that magazines are published 52 weeks a year and we’re open 52 weeks a year. Turning off marketing support provides us with an opportunity to find other uses for the promotional space as my post earlier this week showed.

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magazines

Another weekly magazine?

no1.JPG

I have nothing against the Scots.  I am sure that this magazine, No1, or Free or whatever it is called – (yep, I am confused) is a good seller in Scotland.  As the masthead says, it’s the top seller.  But do we really need this title in Australia?  We are straining under a mass of imported weeklies from the UK already.   Now we have to find retail space for this new title – in an area already short of real-estate.  This is a title I, as magazine czar for all newsagents, would have NOT allowed to our channel.  The sooner we collude and block access to titles like this on current terms the better.

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magazines

Holiday magazine display

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The photo shows our latest magazine feature display – magazines themed around holiday activities.  It’s at our Forest Hill store.

You’ll see we have gone for a mixture of children’s activities as well as places for adults to visit.

 As with previous display, magazines have sold of this stand almost right away. While this is, in part, due to the location next to a busy register, it is also due to providing context for the purchase of the titles. Sometimes leading customers to a purchase works well.

The display has been up since Friday last week and we have already topped some titles up twice.

There is no doubt that the demographic of our newsagency (and most newsagencies I suspect) changes during the holidays. We seize this change as an opportunity to win new customers and make money visitors to the area. Each week for the next few weeks this display will change to try and tap into the holiday demographics.

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magazines

Online user meeting for newsagents

In addition to the free magazine management training event I blogged about earlier, Tower Systems has announced its first online user meeting.  This free forum connects newsagents using the Tower software along with some experts from within Tower.  Most of the meeting will be spent answering user queries – newsagents learn well from listening to questions others ask and taking on board the answers.

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About us

Online magazine management training

Tower Systems has announced the newsagency channel’s first ever online magazine management training session for Tuesday January 15. The session filled in no time. Using the latest web event hosting tools, newsagents will be able to participate without having to leave their own businesses. Connecting to the Internet for visual content and using the telephone (toll free) for audio, everyone gets to participate as if they are in a function room together.

More training sessions will follow including more on magazine management.

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About us

Being cheap

envelopes.JPGI was surprised to see bundles of old greeting card envelopes on a table for sale in front of a newsagency last week. I thought what a cheap message this gives to browsers. Any spare envelopes we have in my stores we keep behind the counter for customers who bring cards without an envelope or to give to customers who may need an envelope for some reason. They are not something I’d sell.

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Greeting Cards

We’re back

Boy it’s been a frustrating 48+ hours for this blog and those working behind the scenes.  Traffic to the blog was crashing the server on which we were residing in Sydney and the server host took us offline.  That was Monday.  Thanks to the stellar efforts of our web developer, Richard Lee, we’re back online.  To achieve this Richard migrated us from Movable Type to WordPress.  There are some kinks to iron out but, overall, we’re back!

 

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About us

Blog issues

We are experiencing some technical challenges which are causing this blog to float in and our of consciousness. We apologise for this and are working with our host and the supplier of the blogging software to sort the issues out.

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About us

Magazines – a 52 week a year business

Publishers apparently think that retailers are closed with little in the way of point of sale materials provided with magazines today. We have been resourceful at or Forest Hill location and created a display for the new issue of Women’s Health. We used black and white copies of the cover to create a canvass on which to feature the magazine.

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Publishers who complain about lack of support from newsagents ought to realise that retail is 7 days a week, 52 weeks a year.

While our Women’s Health display shows that newsagents can be resourceful in creating displays, not every store has the resources we have to get a display like this done efficiently – hence the reliance on the point of sale packs from publishers.

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magazines

Refreshing magazines for the season

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We worked through or magazine categories last week and refreshed displays to reflect the summer season.

With space limited we cannot always give enough real-estate to some categories so we allocate space based on seasons – hence our decision to lift the profile of fishing, caravans and boats in this latest series of changes. This involved us allocating another column so we could create a three pocket masthead display for each feature title. Sometime toward the end of summer the focus will change again.

We see this work as an essential part of managing (obsessing about) magazines.

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magazines

It’s all in the sign

half_price_calendars.JPGWe have been offering 50% off calendars since Boxing Day at or Frankston location but it is only when we took stock from two of our spinners, put it in the box you see in the photo and labeled it Half Price that our customers really started to take notice.

While it’s not pretty, it’s working. The spinners are okay for the leisurely browsers but this side of the New year it’s about the bargain and that’s what the box gets across.

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Calendars

Matt the milkman

I opened the door to face Matt, a young guy in his early twenties who was visiting houses in my street to announce that he had just taken over the delivery of milk and bread to my area – he promised on time delivery of fresh milk and bread every day and a couple of movie passes and a t-shirt if I signed up today.

Besides that he had taken the time to visit and ask for an order- I can’t ever remember a newsagent doing this anywhere I have lived, Matt was bright and cheery, he believed in his offer and he was dressed in a uniform appropriate to his generation and product which gave me the feeling that he could deliver on his promises.

Now, Matt could have been a paid recruiter who has nothing to do with the day to day business. Who cares? The key is that the shopfront presented well and this made the business offer more appealing. Building confidence is crucial in that first contact. This is why I bang on here about newsagents needing to look at their businesses from the outside in – from in the mall, across the road and even miles away in houses where advertising literature is received. What do our customers see? Are they as store blind to us as we are ourselves? Too many newsagents are living in the dark ages, running set-and-forget retail businesses where nothing changes

The company behind Matt had made sure that the detail was right – that he knew his products, looked good, have a special offer and and was well trained in making the pitch. It is this attention to detail which we newsagents often fail to address. In store, uniforms are often not enforced, name badges missing and the sales pitch across the counter confused. Outside our stores we often cover our windows, clutter our messages and allow suppliers to control how our businesses look.

Being visited by a milkman asking if I wanted milk home delivered was a surprise. The professionalism of the offer was even more of a surprise.

With more national retailers competing with our newsagencies than ever, we need to be energetic, focused and current in our approach to our customers – in-store and outside our bus8inesses. We need to be like Matt and make people take notice and realise that we do have a current an relevant offer. Otherwise, standing still will cause our relevance to fade.

Footnote: I didn’t order milk or bread as it does not fit my schedule.

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Newsagency challenges

Growing stationery sales

stationery_relay.JPGFour months ago we started rebuilding the stationery department at our Forest Hill location. The project has delivered year-on-year growth of 29% in revenue from stationery for October, November and December.

The growth can be tracked back to immediately after the rebuilding project was completed.

We quit a ton of old stock, reduced range in some categories, increased range in others and focused more than ever on national brands. The net profit benefit of the project is extraordinary – it paid for itself including labour and capital investment in the first quarter.

In undertaking this project we have exerted more management control over stationery, as retailers and not as servants of a wholesaler or any other party. We dis our research and backed our own judgment and it has paid off. Crucial, in my view, to the project was that it was undertaken by someone who was not store blind to the stationery department in our newsagency.

We are now implementing the same strategy at our Frankston location but with attention focused on the needs of that demographic.

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newsagency marketing

Blogging for sales

I complained here last year about AstroLog and the long on-sale period. Blogging is what helped us sell out. One copy was sent to Europe as a result of my post – others to people who could not get a copy locally. Interesting.

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magazines

Album sales down in the US

AAP reports that album sales fell 9.5% in the US last year. Massive changes to the distribution model for music in recent years has caused this downturn. Print media faces similar challenges but at a slower pace than music – because devices for accessing traditional print product are not quite there yet. Newsagents ought to read the AAP report about music and then cast an eye across capital invested in print product.

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Media disruption

Myki story dead

The lack of follow up by other media outlets and newsagents had let the Myki story thud to the ground. If we wanted to really get traction on this, there needed to be consistent and loud follow up in other media outlets – a rally of newsagents could have done this, especially if it were at a ticket platform. The lack of immediate follow up means that the benefits of the excellent coverage in the Herald Sun of two days ago are minimised.

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Newsagency challenges

The long Aussie summer

With retail now a 365 day a year proposition it is frustrating that so many suppliers to newsagents close this time of year. Here we are on January 4th and still suppliers are closed for Christmas / New Year. Some even have another week off and one or two don’t re-open until after Australia Day. Talk about the long Australian summer.

While suppliers currently on break would say we should have ordered stock to cover, the reality is that I should not be their warehouse. If they want to sell product to retailers they ought to be more responsible to the needs of retailers – like opening right after New Year.

I have opened an account with one supplier today simply because they are open and can deliver Monday. The early bird…

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Newsagent suppliers

Boxing Day sale strategy works

I have been pouring over our numbers this afternoon and our decision to bring in extra calendar, book and card stock for our Boxing Day Sale has paid off across each of our stores. Sales in the three departments on which we focused are up more than 300% on last year since the sale started December 26 – and the base was good. There is no doubt that the excitement around the sale has boosted other categories such as magazines.

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newsagency marketing

Crazy scooter drivers!

crazy_drivers.JPGSome people should not be allowed to drive scooters. Like the driver who brought down our book table when they side swiped our display or the driver who backed into our calendar stand and trashed product or the driver who ran over my foot and scraped my leg when they tried to squeeze past without warning. One driver drove all the way down to the back of the shop and got stuck in a corner not made for vehicles – it’s a retail shop for goodness sake! yep, some people should not be allowed to drive these things. Ugh!

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Customer Service

Comparing card companies

With more newsagents running cards from two or more card companies, it is helpful to be able to report on performance of each card supplier side-by-side and for any date range without producing multiple reports. The Supplier Comparison Report in the Tower Systems software does exactly this. While card companies produce their own reports, taking control in the business empowers us to better deal with pushy sales reps and drive faster credits and replacement of non-performing lines with new product.

This comparison rep0ort is not only for card companies. It also works in the magazine space – indeed, any category where you have multiple suppliers involved.

While it is important to trust suppliers, newsagents need to approach the relationship with suspicion and undertake their own reporting in-house. It’s easy. While I will look at supplier reports, I will trust reports I produce, like the supplier comparison report, more.

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Greeting Cards