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

Author: Mark Fletcher

Bargain Shopper no bargain

bargain_shopper_08.JPGBargain Shopper magazine rips newsagents off. It is supplied late in the month – so they are paid next month – in quantities which are three and four times what newsagents will sell and with a ridiculous shelf life. This is appalling behaviour.

I am early returning 26% of what I received this week as there is no justification for such gross oversupply.

This behavior is unconscionable. The publisher creates the problem with their print run and the magazine distributor facilitates the abuse of the newsagent system. This distributor – NDD – ought to know better.

The problem for newsagents is that the ACCC lets publishers and distributors get away with oversupply at four and five times what we will sell.

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magazines

Green magazines

greenmags.JPGThis is the display we have created next to the counter to promote magazines with an environmental pitch. It’s a simple display, designed to attract.

We have placed the display next to our main newsagency register point as we have found this the most effective in promoting magazines outside the top 50 sellers.

Typically, we will leave this in place for between a week and two weeks – depending on customer interest. We also add new titles as they come in.

I know the display does not look corporate – it’s not meant to. We see this multi-title approach as a service for our customers and in support of the depth of range we have.

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magazines

Command adhesive promotion

command.JPGCommand adhesive products from 3M are featuring in a long format TV commercial based around Christmas use. I have seen the commercial several times on pay TV. Newsagents not carrying the range ought to right away. It’s selling well in stores I am connected with. Be warned however – not all newsagent stationery warehouses have the full line.

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Stationery

Wellbeing, well, no…

Further to my previous post today about Conscious Living, the same health store has Wellbeing magazine for sale. We have it in our newsagency too? Why would a publisher put this stock in my newsagency as well as the health store. The shelf life and cover price makes the title of little value. Getting into two stores reduces sales in one or both so I might as well get out of the space. The health category is doing very well but if publishers like Universal are going to chase other outlets to the cost of my business why should I support them?

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magazines

Conscious Living magazine

It is disappointing to see Conscious Living magazine in a health store not far from my newsagency at Forest Hill. What is worse, is that the publisher lists the magazine as available from this health store and does not list it as being available at my newsagency.

While the two businesses will attract different customers, it dilutes the newsagent pitch as the magazine specialist. Their lack of support on the website demonstrates that we are not central to their distribution plans.

With a six month shelf life, Conscious Living is already cash-flow challenged for newsagents. I am going to re-think stocking the title.

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magazines

Kyrstal’s need for speed

krystal_again.JPGGee, ex Big Brother housemate Krystal Forscutt is busy. She was on the cover of Zoo last week and is on the cover of XBOX 360 (twice since this issue has two covers) and Playstation Magazine this month. What is odd about the latter two covers, promoting the need for speed game, is that they have each used exactly the same photo. Mistakes happen I guess, production errors they get called – we just need to not display them too close together.

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magazines

Darrell Lea in damage control

Darrell Lea sent out another fax about its liquorice promotion today, this time apologising for poor communication with its non-company stores. It is disappointing that it has taken three days to respond but worse that they do not see how disrespectful their action in only promoting corporate stores is. Non corporate outlets like mine seem to be of little interest to Darrell Lea.

I love the Darrell Lea product and have been happy to have it at my Forest Hill store for years. This year, however, they have botched their licensee relationship and I wouldn’t be surprised to see some quit as a result.

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confectionary

XBOX 306 cover(s)

krystal_360.JPGFor some reason XBOX 360 magazine has been produced with two covers this month. Everything is the same except for aspects of the cover image.

I can’t see a reason for doing this – it won’t get the title additional retail space and is more likely to lead to confusion among browsers.

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magazines

Magazine covers and the election

mag_covers.JPGI wonder how much browsers take notice of magazine covers. Here are two which were on the shelves in the month leading up to the election. In hindsight, they provide a commentary of the result. While both titles are not top-sellers, the covers would have been seen by many.

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magazines

Magazines on your iPhone and iPod

Digital publisher Zinio has announced the launch of magazine content for Apple’s iPod Touch and iPhone units. Zinio will initially offer free digital editions of monthly magazines targeted to the iPhone user. US titles announced include:

American Photo, NME, Black Enterprise, Playboy, Car & Driver, Popular Mechanics, Kiplinger’s, Saveur, Lonely Plant (Espanol), Technology Review, Macworld, Viv, Men’s Health, Woman’s Day, Outside’s Go, And more…

This is a very significant move, especially for the iPhone device. Not so much because magazine content will work but because it further disrupts the supply chain between publisher and consumer – of which newsagents are a vital part in Australia.

Based on previous experience I will receive several emails from newsagents complaining about me talking magazines down. They say I should not comment on innovations such as this from Zinio. It is exactly that head in the sand approach to change which has leaft newsagents behind others on many fronts.

The best way to approach change is to pick up your surfboard and ride the wave at the top.

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Media disruption

Darrell Lea late notice

Yesterday we received a fax from Darrell Lea dated November 16 advising the planned promotion about which I blogged earlier. The fax says the promotion of 80 cent 300g liquorice will run from November 19 through 26. A couple of things surprise me – their front of newspaper promotion was on the last day and they let us know about the promotion the day after they ran the stuck on ad on the newspaper.

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confectionary

Free training for newsagents

Here are details of the final series of free Tower Systems user meetings and training sessions for 2007. All newsagents are welcome to attend. At each session we’ll deliver training in the software, preview our next update and answer any questions. Anyone is welcome to attend – watching us interact with our customers is a great way to evaluate Tower Systems.

Perth: 28/11 at 2pm – 5pm (open day)
Perth: 29/11 at 9:30am – User Meeting
Melbourne: 30/11 at 10:00am – New Owner
Melbourne: 30/11 at 1:00pm – User Meeting
Geelong: 3/12 at 10:00am – User Meeting
Albury: 4/12 at 11:00am – User Meeting
Sydney: 5/12 at 10:00am – New Owner
Sydney: 5/12 at 2:00pm – User Meeting
Coffs Harbour: 6/12 at 10:00am – User Meeting
Canberra: 7/12 at 2:00pm – User Meeting
Brisbane: 11/12 at 10:00am – New Owner
Brisbane: 11/12 at 2:00pm – User Meeting
Rockhampton: 12/12 at 10:00am – User Meeting
Hobart: 17/12 at 11:00am – User Meeting
Launceston: 18/12 at 10:00am – User Meeting

Book your place by email.

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Customer Service

A makeover is coming

We are preparing to implement a makeover of this blog next week. We are aiming to make the blog more appealing to the eye and easier to navigate. There may be a few bumps as we transfer the 3,000 or so posts, comments and other details associated with the blog. We are also establishing an independent domain: www.newsagencyblog.com.au.

Today, we’re upgrading our blog software in advance of next week’s moves so please excuse any outage.

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Uncategorized

Full price pens

parker_waterman.JPGHigher end boxed pens are usually supplied with two price stickers. The RRP and a special price. We didn’t receive the special price stickers so put the pens out at full price. A month later when we realised we fixed this, we discovered that it didn’t matter. The pens are selling well at their RRP. A check of our sales team reveals that not one customer has queried the price. It turns out that no one nearby has our range so we are providing a service for which a premium appears to be accepted.

I am not suggesting that newsagents gouge on price. Rather that we understand our market position and take this into account on price. Oh, and just because a discount opportunity is available, it does not mean that we should always take it.

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Stationery

Christmas magazine tip

christmas_mags.JPGPutting the Christmas editions of Food Ideas, Good Taste and Table next to each other and next to our top selling weeklies is working a treat. They will sell out today or tomorrow.

When putting magazines in a such a premium space we look for titles which compliment each other and are likely to encourage multiple title purchase. Yes, we obsess about magazines. We see every unplanned purchase as a victory.

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magazines

Calendar magazines

calendar_mags.JPGI have lost track of how many magazines have free calendars with them at the moment. Some are excellent value and others quite mediocre. Some are poorly attached and detract from the magazine.

I wonder if all these freebie calendars detract from calendar sales? Some newsagents think so. While there must be an impact of so many free calendars being available, I can’t quantify this in terms of sales of calendars in newsagencies.

I am not suggesting that publishers refrain from the calendar giveaway, I can see it makes sense. I guess the purpose of this post is to acknowledge that there are some unintended consequences.

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magazines

Newspapers support Amazon’s Kindle

Check out the list of US newspapers which have a subscription offer for the Amazon Kindle device. Prices range from US$5.99 a month for the San Francisco Chronicle to US$13.99 for the New York Times for a month. While I doubt the Kindle will catch on as a newspaper reading device, support from publishers of these newspapers will make it a device to at least watch from a newsagent perspective.

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Media disruption

Momiji dolls in Frankston

momiji_frankston.JPGThe range of Momiji dolls we put into Frankston two weeks ago is selling well. We were unsure how they would go in a newsagency setting – especially given that this location did not have much experience with premium gifts.

Momiji dolls fit the collectible category and we know that newsagencies are already well visited by people who collect things: partworks, magazines, trading cards… This focus on collectibles is driving other gift related ranging decisions for the Frankston business.

We also stock cows and horses in ther Frankston store and both have people working on the collection. At between $35.00 and $75.00 each, these are nice collections for people to work on.

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Gifts

Check how many magazines you got

FB_dec07.JPGNewsagents may want to check how many copied of Fisherman & Boatowner they received last week. We usually receive three copies. This month they sent six. On inquiry I was told it was a re-launch. Okay, that’s fine. Don’t use my cash to support the publisher’s efforts – not when we sell, on average, two copies of each issue.

Once in two years we have sold three copies – no justificati0on for a 100% increase in supply.

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magazines

Who is celebrating Darrell Lea?

dlea.JPGThe photo shows a closer look at the ad stuck over the masthead of today’s Age newspaper. It offers a 300g bag of Darrell Lea liquorice for 80 cents.

It’s a good deal, but there is a catch. You have to go to the website to find the participating stores – as if people with the coupon in their hand have time for that. No, they will think of their closest Darrell Lea location.

My newsagency at Forest Hill is not listed as a participating store. In fact, I can’t see any newsagency listed as a participating store. From what I can tell the list is corporate stores only.

Maybe the marketing people at Darrell Lea are smarter than me because I would have thought that tying in this promotion with a newspaper and through outlets which sell newspapers and the Darrell Lea product would have been smart.,

I know we will get customers asking about the deal. Should I tell them to go to a Darrell Lea store? Of course not! Given the floorspace, labour and stock investment I have made in Darrell Lea for the last five years or so, I am not about to tell my customers to go elsewhere. Now, we’ll come up with a response which hopefully does not direct them elsewhere.

This is a disappointing offer from Darrell Lea which, on the surface, appears to disrespect its non corporate stores.

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confectionary

What customers tell you…

customer_stories.JPGI noticed an older woman writing details of our range of inspirational booklets, cards and books at our Frankston newsagency last week and approached and asked if they would like some assistance. Her story was the kind of personal story newsagents hear regularly, one which reminded us of the personal nature of our businesses.

Our customer was writing the titles of the small inspirational books we sell so she could keep track and not duplicate the titles she was sending to her sister who had recently been diagnosed with cancer and was undergoing intensive treatment in another state. She was sending a booklet a week and wanted to plan her dispatches, to make sure that she did not break the link.

We were able to identify enough titles in the series for the next six months and this clearly relieved her. She was certain that the booklets and their motivational messages were important to her sister’s journey with cancer. We talked for a few minutes and she moved on about her day. Her story and that of her sister stayed with me for it reflects a connection we have with our customers which, I suspect, would be rare in a more corporate business.

My customer didn’t have to tell me her story. That she felt comfortable to do that and we were able to help with more product like she was looking for created a connection which I cherish – if I could put it that way without sounding over the top.

The biggest change in newspapers, magazines, cards and stationery over the last ten to fifteen years is that these categories have moved from our local, family-run, channel to corporate businesses where the dollar is all that matters. In those barns there is little time for stories like I heard last week – it’s not one of management’s KPIs. Thankfully, there are still enough independent small businesses – newsagencies, pharmacies, green grocers, florists and butchers – where there is enough time for personal stories.

It amazes, even shocks me sometimes, what customers talk about. This past week, the personal story my customer’s sister and her efforts to maintain a caring connection by distance touched me and reminded me of the humanity of retail and why engaging with customers without focusing on the dollar is rewarding.

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Customer Service

Now the election is over…

Many newsagents will be pleased the election is over, they expect Christmas sales to kick in from this week. Not all have experienced a slow lead up to Christmas – probably 50% of the ones I have spoken with.

Thre are many theories as to why elections seem to slow business or at least stunt what we would have expected as a Christmas rush this time of the year. The one which makes sense to me is that since news is a key focus in our businesses and election news is often negative, it is hard to capture the spending spirit of the season.

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Newsagency challenges

Lease protection over magazines

I was in a Priceline store yesterday and noticed a magazine for sale on the counter. I wonder what the permitted use clause in their lease allows. Some newsagents were successful in blocking Gloria Jeans from offering newspapers because the lease did not list newspapers as a product they could sell. As publishers seek more outlets, shopping centre based newsagents will need to take up the lease issue.

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magazines

Newsagency misses Women’s Weekly sales

aww_dec_supp.JPGWe received some Women’s Weekly stock on Friday at Forest Hill (after their production problems caused us to miss our delivery Wednesday) but we will sell out over the weekend.

Unless we get more stock Monday, I’d say our performance this issue will be around 40% of usual for the Christmas issue. This will cost us around $600 in sales of the title and, I’d expect to lose at least that again in associated product sales.

On top of direct lost sales is the cost of lost customers – who knows whether a customer who purchases elsewhere stops coming to the newsagency as a result.

I appreciate the ACP did not want the production problems. However, to have all major competitors around my newsagency fully stocked and me not severely disadvantages my business and disrespect my customers.

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magazines