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

Author: Mark Fletcher

Losing money on some magazines

old_magazine.JPGThis issue of Your Toddler magazine arrived on August 8 this year. It is not due to be returned until week 5 2008 which means newsagents will not see a credit until late February at the earliest. We received six copies and have sold three – generating a gross profit so far of $5.85. The cost to us in terms of real-estate and labour from hosting this title is $17.50.

Nothing new in this, it is the magazine supply model at work. Newsagents control the key asset of retail real-estate yet we are treated appallingly.

Network Services, the distributor of this title, is the first to cut newsagents if they are a day late in paying their bill yet they will gladly abuse newsagents by supplying on loss making terms as the example above shows.

This is another reason newsagents need a magazine czar who speaks for the whole channel and controls what we are supplied and the terms. Without this, companies like Network will abuse our lack of strength and disorganisation.

0 likes
magazines

Wish for newspapers to be more like Apple

Steve Yelvington has an excellent blog post on why newspapers ought to be more like Apple. Apple was in bad shape just a few years ago but turned the situation around by embracing change.

Yelvington’s wish applies as much to Australian newsagents as newspapers. Rather than embracing opportunities presented by change, the common newsagent approach is to blame someone else and complain.

The newsagent 2008 New Year resolution ought to be about reinventing the business.

0 likes
Newsagency challenges

Free newspapers grow in Australia

Readership of mX, the free daily newspaper from News Ltd for the Sydney commuter market grew a whopping 60% to 98,000 from September 2006 to September 2007 according to Newspaper Innovation. mX in Melbourne, several years older, grew 9% to 146,000 in the same period. Worldwide, free daily circulation reached 42 million in 2007. The complete roundup from Newspaper innovation can be found here.

Free newspapers are one of the strategies being employed by newspaper publishers to counter disruption brought on from other media.

0 likes
Newspapers

Borders, Sony team and open e-book store

sonyreader2007.JPGBorders and Sony have launched a co-branded e-book store according to The Book Standard. People who buy a Sony reader (see photo) have access to the site.

With the Amazon Kindle and this Sony device leading the renewed e-book pitch, expect to see plenty of action in 2008. This action will flow over to electronic editions of magazines – as we have seen already with iPhone and iPod versions of more than 50 magazines available already in the US. While there are online magazines in Australia, none of our major titles are embracing the iPhone or iPod yet as far as I am aware.

The book and magazine supply chain has changed and our businesses – newsagencies – need to change too. By embracing change early – as Borders has – we are better positioned for the future. Given the lack of active discussion among newsagents about the disruption of the supply chain, I fear many will miss the opportunities change presents. There is nothing to fear from change in my view.

0 likes
Media disruption

Where are the magazines?

Magazine publishers and distributors pushed their product outside the newsagency channel and into other outlets (petrol and convenience, major retailers) in the name of giving consumers the choice. They said that times had changed. Well, it suited them today that. Times have changed. Boxing Day is a massive retail day in some states. yet we received no magazines to support the opportunity. I guess the times have changed pitch drives only some decisions. I wish we had magazine deliveries in Victoria as some customers in my newsagencies for the first time would have purchased a magazine from us.

0 likes
magazines

Boxing Day Sale success

boxing_day.JPGWe embraced the Boxing Day Sale party with gusto today. At Forest Hill (photo) and Epping it was busy but ordered, in Frankston and Watergardens it was busier and less ordered. In Melbourne Central it was nuts – every person for themselves. In each store we have seen deep baskets with customers buying four and five packs of cards, wrap and other items on site.

Given the publicity surrounding the Boxing Day Sales in Melbourne, we have found to best to wholeheartedly embrace the opportunity by packaging special offers which deliver excellent value. It’s what they are out today for after all. Doing this demonstrates that we can mix it with the big retailers and that small businesses are relevant at sale time. From a pure numbers perspective, our experience is that it’s worth the effort in our newsagencies and our card & gift shops. The key is to plan in advance so that on the day everyone knows what to do.

0 likes
newsagency marketing

Christmas ’07 greetings

To all who read my ramblings here, have a wonderful Christmas Day. I hope you get an opportunity to shutdown, turn off work and relax. For many of us it all starts again on Boxing Day. I’m not complaining, it’s a life I have chosen.

What I have enjoyed most about this Christmas is the customers – so many wonderful stories, so many nice smiles. There is no better place than the shop floor some days.

0 likes
About us

A Christmas tradition

I was tidying Christmas cards and noticed a mature lady spending a long time looking at cards. My offer of help led to her sharing a story of a tradition she follows that goes to the heart of the season.

My customer was not there to buy a card but to look at them – to read the words of the Wife cards. Her husband died a few years earlier and he always went to great lengths to find a card with just the right words. He didn’t say much when alive and Christmas and Birthdays were the times he let her know how he felt, through the cards. She has a box of them in her ‘linen press’.

Each Christmas she visits a newsagency or a card shop to read the cards her husband would have browsed. As she told me yesterday, she feels closer to him at Christmas for having done this.

I left her to browse and went about my business, happier for the encounter.

Customers have the most wonderful stories.

0 likes
Greeting Cards

The fitdeck phenomenon

fitdeck.JPGFitdeck started selling in our newsagency when the Herald Sun ran a story about Adam Ramanauskas and his endorsement of the fitness product. We sold out of our first shipment in a week and are now working through our second shipment.

Fitdeck is a product every newsagent should sell – complimentary for buyers of Men’s Health and Women’s Health. We have it at the counter in part because it is in the news and people will recognise it and in part because people ask if we have it. I love that the Fitdeck website promotes that it is available at all leading newsagents and bookstores.

If you found this blog post through a Google or other search are are looking for Fitdeck, you can contact our newsagency at 03 9878 2515.

0 likes
magazines

Magazine cover price debate

There is an interesting discussion going on in the UK about the cover price of newspapers and magazines. Some newsagents want no cover price printed on publications so they can set the prices themselves. The National Federation of Newsagents in the UK, recently decided to investigate the feasibility of removing cover prices.

An issue driving the UK discussion – who carries the cost of the supply chain – is relevant in Australia. While magazine publishers and distributors have made great strides in cutting costs out of their supply models in recent years, the refusal of some to transact efficiently with newsagents has denied us the opportunity to cut costs out of our businesses.

0 likes
magazines

Boxed cards strong to Christmas Eve

There was a time when boxed card sales fell off and single card sales took over – usually a week or so out from Christmas. At our Forest Hill store, where we have the longest history with boxed cards, this year has been different. Boxed card sales continue to be strong. We’re not engaged in discounting so the cards are selling on their merits.

0 likes
Greeting Cards

Andrew Rieu writes for Limelight

limelight-jan08.JPGAndrew Rieu has joined Limelight magazine as a columnist. This will broaden the appeal of the title and give us good promotional hook. I mentioned a couple of days ago about the Melbourne Observer newspaper with Rieu on the cover – it sold out. So did Limelight last month with the Rieu DVD. We have sold 80% of the current issue of Limelight. Staying on top of people and topics helps us be opportunistic retailers. For example, Limelight will be of greater interest as a putaway thanks to the Rieu column.

0 likes
magazines

Christmas for magazines

car_mags2.JPGThe motoring magazine display we created last week has led to a 30% increase in the sale of motoring magazines over the same period last year. Six months to date we have recorded little year-on-year growth for motoring titles – until our display was created. Much of the growth has come from the titles included in the display – we were careful to choose titles which made for good Christmas gifts – such as the HSV Yearbook.

The base off which we achieved the 30% growth for motoring magazines over five days was 145 copies.

We obsess about magazines, implementing all the newsXpress magazine strategies as well as some local strategies chasing opportunities we see.

The motoring display we created has been more important to us this last week than displays suppliers have had us do in our newsagency – in part, because it focuses on the category as opposed to a title and in part because it present Christmas gift-giving opportunities. I am disappointed that our initiative, while more valuable for sales, will not be recognised by any of the magazine publishers as it falls outside the same-size-fits-all approach to marketing against which they measure and reward newsagencies.

I’d like our key suppliers to look for more opportunities to reward entrepreneurial effort which generates incremental business – such as this motoring display.

0 likes
magazines

Promoting Madison

We have three aisle ends at our Frankston newsagency now for magazine displays: one for the ACP magazines’ Connections promotion of the week and the other two for titles we choose. We joined Connections a couple of weeks ago. The aisle ends work well when the publishers provide sufficient and appropriate material of use – as happened for Madison last week.

madison_frankston.JPG

This display is the first ever done by Simon, manager of our Frankston store.

The challenge is when Connections promotes a low selling title or for which you do not have the stock to justify the real-estate investment.

0 likes
magazines

British Homes and Gardens abuses system

brit_garden.JPGWhy do we need to have two issues of this British Homes and Gardens magazine on our shelves at the same time? I am sure the importer and distributor will have a reason but as a retailer funding their decision it makes no sense to me. This behaviour denies newsagents the opportunity to effectively retail and it sucks us of cash. It is yet another of a broken magazine supply chain where newsagents and their efficient distribution system are abused.

0 likes
magazines

Weather pain

The rough weather these past couple of days have thrown Christmas trading into chaos for several newsagents In know. Yesterday and Thursday were particularly bad in Melbourne – across the suburbs. While stock has been damaged, the more inconvenient pain has been the loss to communications from the shop – hitting the financial services and payment methods. If people can’t pay on a card they often leave the goods at the counter and walk out. In some stores, credit and debit cards are used for a third of all transactions.

0 likes
Newsagency challenges

Bags rule Christmas

handmade_christmas_bag.JPGWhile sales of Christmas wrapping paper are strong, it is the bags which have been a sell out. From this small Aussie designed and hand made bag right through to the large licenced product like the Spiderman Christmas offer from Hallmark. Getting extra stock has been the challenge – not so much for Forest Hill which we had good data for but other locations where it was a bit of a roll of the dice.

0 likes
giftwrap

On the retail road

Being the hands on (obsessive) type, I’m spending many hours each day at the moment in and moving between our newsagencies at Forest Hill and Frankston, the newsXpress corporate store at Watergardens and the three Sophie Randall stores. The thrill of this is seeing Christmas retail from many perspectives, especially on categories common to each business: cards, wrap, diaries and calendars. I’ve learnt more about demographics and customers in the last few weeks as a result of this and am excited to play more in 2008.

0 likes
retail

My view of newsagencies

A common question people reading my ramblings here ask is why should they buy a newsagency? They see issues I raise as show stoppers in their consideration of buying a newsagency. Sure, there are challenges. Every business has challenges. Overall, newsagents can manage the challenges. A well managed newsagency runs well – the key is good processes, sound advice from experts / mentors and a regular stream of marketing and business development initiatives.

Life as a newsagent is good. It’s honorable work and important for the community – we’re the last bastion of personal service in a very corporate retail world.

Newsagencies have an excellent future if we focus on the right business decisions for our businesses. This means we broaden the focus of the newsagency in some areas and narrow the focus in other areas. For example, we need to tell our core suppliers we will do less of their bidding unless it can be demonstrated this work (posters, displays and the like) generates real revenue for us as opposed to them.

By leveraging our traffic, building a deeper basket on the back of increased traffic while at the same time tweaking margin, we can build very successful businesses. Our blessing, right now, is our traffic. Today, this is what makes buying a newsagency a good move. Entrepreneurial newsagents can leverage that traffic and create for themselves and excellent return on their investment.

Te key is to know you are going into a master / slave relationships in some parts of the business and to make decisions which minimise pain from the lashes as much as possible.

0 likes
magazines

Listening to a customer

Jane was in severe pain and facial swelling due to a tooth problem at our newsXpress Forest Hill store a week back. Mr Wu, always ready with remedies for any situation, told Jane to have someone born in the year of the tiger to paint on her face in ink and using a brush the sign of the tiger with a circle around it – over where the swelling was. Respecting her customer, Jane had this done by Luke, who met the criteria, as she was leaving for work. Maybe it was the distraction of being stared at or maybe Mr Wu’s sage advice was right, but the swelling started to go down on Jane’s drive home.

It’s amazing what customers tell you sometimes.

0 likes
Customer Service

When a book is a magazine

animal_songs.JPGWe received two copies of this Animal Songs book from a magazine distributor on September 12. It’s due for return next week. We have not sold either copy.

Magazine distributors ought not distribute books without permission. Titles with a shelf life longer than four weeks ought to be billed only after scanned sales data is provided. This title is another example of the abuse of the newsagency channel by a broken magazine supply chain.

0 likes
magazines

Andre Rieu cover on Melbourne Observer

rieu_observer.JPGThe Melbourne Observer has a cover story this week about Andre Rieu – guaranteeing excellent sales this week before Christmas. We have put copies of the Observer on the counter, next to copies of Limelight, the ABC mag with the Rieu DVD sampler on the cover. I’d encourage Victorian newsagents to try this, Rieu is very popular with broad appeal.

The Observer continues to actively support newsagents with listings and other mentions in its pages – giving more space than any other publication to our channel.

0 likes
magazines