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

Author: Mark Fletcher

Women’s Weekly still missing

This is our second day without the current issue of Women’s Weekly on the shelves while major competitors around us are well stocked. A representative of the ACP Connections program, a marketing arm within the publisher, visited our Forest Hill store yesterday and asked pointedly why we did not have the Women’s Weekly display material up for the new issue. It seems she was more concerned about poster placement than whether we had the stock to sell.

Some days I wonder if the one-way regulation imposed by publishers is worth it.

0 likes
magazines

Children’s books top sellers

Bookseller and Publisher magazine reports that sales of children’s books are up significantly this year compared to other book categories. Newsagents could leverage this knowledge to better display Children’s magazines and related reading titles such as Little Ears.

0 likes
magazines

Government small business policy

ap_xmas07.JPGWhile car makers battle cheap imports and farmers battle a drought, newsagents are battling their own Government which appears intent on wrecking small family businesses. Despite robust representations, the Government has facilitated the push of the retail network it wons to take more revenue from newsagents. This is a scandal.

This new catalogue from Australia Post offers further evidence. Here we have over 800 government owned and protected retail outlets pushing deeper into categories previously well served by newsagents. Not one page of this sixteen page catalogue offers postage product (except for a subtle reference to postage) yet it relies heavily on the protected Australia Post brand.

I am all for competition, but not driven by a government owned and protected retail network which is operating, in my view, outside the provisions of the Postal Act.

Every dollar taken by an Australia Post government owned store for stationery, greeting cards, colouring books computer media and calendars is a dollar missing from a small business competitor. Where is the economic sense in Government shifting this revenue from private enterprise to its operation?

0 likes
Australia Post

It’s not quite poaching

Receiving an application from someone working for a colleague newsagent presents an ethical dilemma on several fronts. Do you tell your colleague newsagent? Do you let the candidate know?

In the past I have had a policy of not hiring someone currently working for a newsagent I know without their knowledge. I can see this could be unfair to a candidate who does not want their current employer to know they are considering moving on.

On one occasion years ago I let a Tower Systems client newsagent know one of their employees had applied to us. He got grumpy so we did not even proceed to interview – even though the candidate seemed ideal for us. He sold the business a few months later and she was out of work.

We have developed a process for handling the situation. We let the candidate know that we know their employer and given them the opportunity to ask us to not contact them. This respects their privacy and offers an opportunity for them to put any issues on the table. We feel this is a better approach than talking, without their knowledge, to their current employer.

0 likes
Ethics

Where is Women’s Weekly?

Women’s Weekly is missing from the three newsagencies in Melbourne with which I am directly involved. ACP said that Melbourne metro outlets would get a special delivery of stock. I assumed this would mean we would receive it later today. Unfortunately, no. So, we’re displaying the old issue while Coles, Safeway and our major competitors have the new issue. I feel like a second class citizen.

0 likes
magazines

Is Bill Express too expensive?

A potential supplier to newsagents approached me earlier this week seeking access to the newsagency channel for their voucher based product. They claim to have approached Bill Express but were turned off by what they say is a high access cost.

Newsagents place enormous faith in Bill Express as a gatekeeper for our channel. I’d like to think that there is an audit of all proposals put to them by suppliers wanting access to newsagents – to ensure that newsagent interests are being fairly represented.

I am in a similar position at Tower Systems and resolve this by providing free access through our point of sale software. We take no commission on sales and implement links (such as eziPass) for new products without charge. We are as transparent as newsagents should expect.

0 likes
Bill Express

VIP night success

We have experienced VIP shopping nights in a couple of our newsagency locations in the last week. The numbers tell me they are a success – even after allowing for the costs of being open and the discounts provided. Given that consumers think newsagencies are expensive, it’s good we participate in any activity which shows we have a value proposition compared to other retailers.

I have noticed high street centres running VIP nights as well as the usual mix of shopping centres. If you haven’t tried a VIP night, have a crack.

0 likes
newsagency marketing

Customer newsletter

We are getting some good traction with our monthly customer newsletter. It’s a passive marketing strategy at the front of our shop promoting a magazine of the month, phone recharge, a stationery competiton (we have 6 laser printers to give away) and boxed Christmas cards among other things.

nl_nov.JPG

Visually it is nothing special – that’s deliberate in that we felt if we made it too attractive it would not come across as being personal, from us.

0 likes
Customer Service

Gifts for teachers

teacher_gift.JPGFinding the right gift for a teacher is a challenge so I’m glad we found this desk calendar. We first purchased it for our gift shop and now are trying it at one of our newsagencies.

It’s a good gift for students and parents wanting something different to give a teacher. Even though it’s American, I’ve flipped through the pages and reckon it will work a treat here.

0 likes
Gifts

eBook 2.0

Newsweek has a cover story about the Amazon Kindle. The claim is that this device will provide access to books, newspapers, magazines and other on line content. Engadget has a good assessment of the offer based on details released so far. The question is whether this is the holy grail and that the much talked about promise of eBooks (in all their incarnations) is about to be realised. Who can forget the iPod moment for music distribution?

0 likes
Media disruption

Why not a magazine sampler?

the_lost_dog.JPGWhat a great way to promote a book – by giving away the first chapter! That’s what the publishers are doing with The Lost Dog by Melbourne based world renowned author Michelle de Kretser. I picked the first chapter free at my local coffee shop yesterday morning.

This is what I wish magazine publishers would do – package an article or two to provide a sampler for the title. Newsagents could give these away to customers purchasing other items. We could stamp the freebie with our details so that customers know where to purchase the magazine or include an offer of our own to drive sales.

I especially like this sampler giveaway idea for when we have traffic generating lottery jackpots and superdraws. Done properly, the sampler would feel genuinely valuable, like a gift. Customers would look favorably on newsagents and the masthead represented in the sampler – a great marketing investment I’d say. The key, as noted, would be to do this right, with some quality.

The magazine categories which I feel would benefit from a sampler strategy would be crosswords, crafts, food, current affairs and home/living.

Allen & Unwin would have only invested in giving away chapter one of The Lost Dog if they trusted the strategy. If it works for a book why not a magazine title. How about it magazine publishers? I am sure it would be easy to find a group of newsagents to test the opportunity.

0 likes
magazines

The precious counter

counter_disp.JPGThe folks at Home Beautiful sent us a counter unit with which to promote their latest issue. I decided against that and instead put Better Homes and Gardens on display.

The counter is about impulse opportunities. Low hanging fruit is easier to pick and that’s what Better Homes is low hanging fruit.

Home Beautiful, while a fine publication, is not a top seller and would not have achieved the incremental sales of Better Homes.

0 likes
magazines

Oversized Madison

madison_fat.JPGWhat is it with publishers and these oversized magazines. Last week it was Dolly, now it’s Madison which is too big for traditional magazine fixturing. Covers sell magazines and we can’t display Madison as well as we would like this month because of the free gift.

Before you label me a whinger, there is reasoning behind my complaints – I like the magazine displays to look neat – it assists browsing and segmentation. This stack of Madison means we can’t do that.

0 likes
magazines

Embroidered John Howard

john_howard.JPGI was going through some material I collected at the Gift fair in Hong Kong two weeks ago and found this photo of embroidered artwork featuring John Howard. He has been embroidered along with a bunch of other “world leaders” including Saddam Hussein, Tony Blair, Yassar Arafat, Bill Clinton, George Bush and a bunch of others. His is not the best likeness.

It’s amazing the things you see at a Gift fair in Hong Kong.

0 likes
Gifts

To catch a shoplifter

mag_thief.JPGIt is fascinating watching someone walk into the newsagency, pick up a newspaper, walk to the crossword magazine display, pick up a magazine, place it inside the newspaper, come to the counter, pay for the newspaper and leave. He was good about it when approached at the food court and allowed us to take the crossword magazine back.

I remember Brian Everingham showing me the sales approach at his Puckle Street Moonee Ponds newsagency in the early 1990s. He’d hold a newspaper by the corner and let everything fall out. Thanks to that demonstration we suggested to newsagents they, every so often, have a scan only day – when you only process sales by scanning.

The crossword thief would have been caught at the counter had we done this.

0 likes
theft

Great OK! magazine promotion but…

ok_nov18.JPGIt’s great to be have the material to be able to promote OK! magazine this week. The POS material provided is among the best I’ve seen from a publisher.

The OK! material has been let down by the Gotch distribution system which cut us back based on patchy sales a few weeks back. It amazes me that distributors and or publishers are quick to cut back on these weeklies yet slow to cut back on titles which don’t sell.

The amount of time newsagents waste on navigating magazine supply (over and under) is ridiculous.

0 likes
magazines

AGM season

It’s AGM season for newsagents with meetings scheduled for GNS, the ANF and VANA. I assume NANA and the QNF have had or are soon to have their AGMs. If 2007 is like other years, the AGMs will be poorly attended and few tough questions asked. Newsagents are not engaged in directing the organisations which serve them.

Those on the boards of the organisations bemoan newsagent disinterest. Having been involved at this level, my sense is that disinterest among newsagents stems from a disconnect between boards and their constituents. People need to experience being listened to and to see that their opinion leads to action to encourage engagement.

An example of this is the Tower Systems user meetings. We run 70 a year and half the time at each meeting is driven by user feedback / comments / questions. Invariably, this leads to software enhancements. We get good numbers at the sessions because people see their opinion as leading to action.

0 likes
Newsagency challenges

Off the air

I apologise for this blog being off the air most of the weekend. We were attacked and our servers succumbed. We’re back now as you can see. I can publish posts and you can;t view them.

0 likes
Uncategorized

Is Google getting into the magazine business?

According to Weekly Insight, a blog, Google could be preparing to take on magazines and in a way which could set the distribution network on its ear.

Recently, Gilbarco introduced a kiosk system that enables Google local search, maps and coupons to be accessible in gas stations, convenience stores and the like. In addition, Google, with its patent filed in May of 2006, shows interest in expanding this type of “on demand” content by introducing itself to the magazine publishing industry.

Newsagents should read the full blog post.

Consider this: a kiosk system at fuel outlets with a Google search built in – this will connect you with local businesses, local ads and could even connect you with local stories, all on demand. While the Weekly Insight post suggests the model is more novelty, newsagents – who rely on magazine traffic for around half all traffic in our stores, ought to be aware of technology moves which could impact the core of our businesses. They are setting a fire on the disribution of boks so why not magazines?

Google looking at DIY Magazine Publishing, an article referred to in the Weekly Insight post and published at huomah.com, outlines one way a Google magazine offer could work.

Two years ago I wrote here that content wants to be set free from mastheads, as individual songs wanted to be set free from albums/CDs. It will happen. Disruption, significant disruption, of the supply chain is inevitable. This is what newsagents should be talking about, not minor operational issues like late delivery of papers and the like. No, there are big picture changes on the horizon and I worry that too many of us have no idea and will be shocked when they artart to impact their businesses.

0 likes
Media disruption

Which politician cares about small business?

ap_nov17.JPGNot I says John Howard, the Prime Minister who has allowed, on his 11 year watch, Australia Post to considerably expand, through its government owned retail stores, its reach into retail categories previously served well by independent small business newsagents.

Not I says Helen Coonan, Minister responsible for Australia Post, who ducks behind the legislation as the reason her hands are tied. Apparently controlling both houses of parliament does not give the minister to go against Australia Post management or the Government’s desire fro profits from their monopoly based corporate-store retail operation.

Not I says Fran Bailey, minister for Small Business in the current government who stands behind Minister Coonan and everything she says about the legislation allowing Australia Post to compete directly with small business newsagents.

Not I says Kevin Rudd who remains silent on this issue of vital importance to the thousands of working families connected with newsaegcnies as owners, employees and suppliers.

This Government took away the one monopoly newsagents had in 1999. It did so without compensation. Ignoring overseas best practice on competition policy, it has continued to protect Australia Post and has sat on its hands while Australia Post management has aggressively and deliberately targeted the weakened newsagency channel.

Newsagents are not big news. People this they are rich and can fight for themselves. Sure, we can fight, but we need a level playing field. When it comes to the Australia Post corporate stores this is not the case. They have monopoly protection and and they levearge this to get further and further into the newsagency space.

Do politicians care about small business? I suspect not. Sure some are great at beating their chest and saying they are friends of small business and friends of newsagents. These noisy folk need to be asked for proof. I can’t find it.

The photo is from the Government owned Post Office opposite my Forest Hill newsagency this morning. This shop sucks people in with products and services protected by the legislation and pitches cards, books, stationery – all manner of things – while the poor blighters are stuck in a line waiting to get to the counter. Yep, this is the Government’s small business policy on show for all to see.

0 likes
Australia Post

It seemed like a good idea at the time

fr_cards.JPGThe photo is of the front left side of our newsagency in Frankston.

Where you see boxed cards, the business has run magazines – weeklies and some feature monthlies as a co-location strategy.

Two weeks ago, I decided we should replace magazines with boxed Christmas cards to drive sales.

Boxed cards immediately picked up – to the cost of magazine sales. I was surprised at how many magazines were purchased from this small display. Weekly titles were affected most. So much so that yesterday, we flipped the display back. It is a lesson learned. Being in a high passing traffic area, in front of a supermarket, it is clear that having the weekly titles at the front of the shop like this facilitates impulse purchase. While we need to address, for the overall benefit of the business, right now we need to get back the sales lost over the last two weeks.

While we have put magazines back in this valuable place, we have not forgotten boxed Christmas cards. Further down the front of the shop we have strengthened our offer to attract passing traffic. Early indications from yesterday are that this will work for us.

Change is great in any business situation. We measure, change and measure again. If the data shows a change is not working we either change again or go back to what we had. I was wrong on the boxed card approach in this high profile magazine space at the front of the shop. It was worth trying and appreciate the lesson learned.

0 likes
Greeting Cards

Women’s Health success continues

wh_dec07.jpgIt has only been on sale for three days and already I’m hearing reports that issue #2 of Women’s Health is selling as well as issue #1. I think we’ll look back in 2007 as this title being the stand out magazine launch of the year.

Newsagents are certainly helping drive sales with excellent positioning in high traffic areas.

0 likes
magazines

Jumping the border

merchandisers.JPGMerchandisers have a job to do live all of us but encroaching on other titles steps over the line. Vogue Entertaining & Travel is already bigger than your average magazine, the additional material put around the title is unfair on the neighbours. A smarter and fairer move by the Vogue folks wold be to provide me with a flyer which In can include with every sale, promoting the title and leaving space for me to stamp my business details. Retail real-estate is precious. However, it needs to be treated fairly.

0 likes
magazines
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011