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

Author: Mark Fletcher

Promoting British magazines

british.JPGThis is the display we have created at the counter to promote some of the British magazines we carry. It looks better in person than my my poor photo shows. Headed The Best of British we have printed some flags to highlight the promotion.

In the day the display has been up we have sold some of the featured product – it is too early to tell if the sales are impulse or not.

While not a glitzy or sexy retail display, we think this promotion will work as it speaks to our demographic in a subtle way – and is located right at the counter.

We’re doing this because we want to promote the British connection across multiple magazine categories – not because a publisher is paying us promotional dollars. This is an important difference between small and big business when it comes to magazines, a difference some publishers are yet to grasp.

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magazines

Time and the bonus magazine

time_oct1.JPGTime this week has a style and design magazine stuck on the back. It is frustrating that this is bigger than time – making the resulting double look a bit messy on the shelves. While the editorial and production folks for the Style and design issue probably have the size they want, the main Time product suffers – it’s too big for the usual location in our shelves and looks messy. The other side of this offer is how we display the product. Time is not a big seller for us so we’d just focus on the weekly and not the bonus title. None of these issues are big deals – just things we wish had been thought through.

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magazines

50% discount off cards at Nextra

nextra_cards.JPGThis is a surprising deal from Nextra – 50% off John Sands and Ink Group cards for a week. While I’d expect Sands to be rebating newsagents at full retail, it is the message to the consumer which I question.

The discount might grow sales but will it add to business? At best, I’d expect it to pull card sales forward of when they might otherwise be achieved. People only so many birthdays, anniversaries and the like to buy for in a year. This 50% discount will not increase the buying occasions. But maybe the folks at Sands and Nextra know more about card buying habits than I do.

Nextra has a good Card Club. I think it would have been smarter to better promote this since it supports the habit basis of card purchasing. The Card Sale locks out this loyalty promotion – read the small print on the poster.

I’d rather leave these chunks discounts to the likes of Target, K-Mart and others. They are known for category wide discounting. Newsagents are more known for card quality and range than price. If someone really wants to buy a card on price they will more likely go to the Reject Shop or similar.

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Greeting Cards

Future distribution

One only has to look at the investment moves of major media players like Kerry Stokes to get a feel for the future. Distribution is the key, hence the interest in Unwired and possibly Austar. In the meantime, many newsagents struggle with the question of whether to install broadband.

How are the Stokes moves related to newsagents installing broadband in their businesses? Both moves say something about how the respective operators view the future. Stokes sees that distribution is the key. Newsagents, by their slow uptake of broadband, do not.

Newsagents ought to get live with broadband. Beyond that, they (we) ought to take careful note of moves by the Stokes, Murdoch and Packer. We need to reconfigure our business for a future where information and news are accessed more online than in print. This world, when it arrives, will impact our current model.

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Newsagency challenges

Federal Government in conflict

Senator Helen Coonan speaking on the 7.30 Report on ABC TV last night:

…we clearly couldn’t have the conflict of being both the owner and the regulator.

This from the same Communications Minister happy to be responsible for regulating the government owned Australia Post.

Australia Post, holder of a postal monopoly in this country, also owns 865 corporate stores which compete with small business newsagents in the stationery category.

This same government deregulated the distribution of newspapers and magazines in 1999, stripping newsagents of their monopoly without compensation.

Australia Post has unleashed considerable corporate muscle against newsagents in the years since 1999. Much of that corporate muscle has come as a result of its Government protected monopoly.

For some background on the Government facilitated Australia Post assault on small business newsagents through its corporate stores click here.

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Australia Post

Framing printer ink

To counter visual noise and draw attention to our ink and toner offer we are experimenting with a frame around our ink product. The Hot Ink border draws attention to ink – I’ve noticred people walking across from the newspaper stand in front. On saturday one such customer walked out with three cardridges when all she came in for was a newspaper.

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The frame is make-shift, printed on our copier. Now we can see it works, we’ll make it pretty and robust.

Visual noise is a real challenge for newsagents – we are provided many posters and other materials by suppliers wanting eyeball time. Many of us just whack these posters up without thinking that less is more. By framing like this I hope we can better manage space allocation and drive categories which support our margin goals.

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Stationery

Returning lost credit cards

We send credit cards left in our newsagency and not reclaimed for a day or so back to the issuing bank with a covering letter. Not once has any of the banks written to us thanking us and while we are not looking for kudos, it would be nice to have the return of the card acknowledged. Given the risk of credit card fraud of lost cards I would have thought our attention to closing the loop was appreciated.

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Customer Service

Which copy Real Living is the real copy?

rl_oct.JPGWhich copy of Real Living and Table am I supposed to promote in my newsagency this month? The regular issue or the one hidden in a sealed bag proclaiming 20% off. I know which one customers will reach for first – the bagged copy.

This is a frustrating offer from ACP Magazines. We have Real Living. We have Table. Now we have the real Living / Table combo pack – a new stock item requiring additional shelf space, labour and cash flow.

I appreciate ACP may want to experiment with these deals. I wish newsagents had been consulted first and that we were compensated for our investment. The magazine experience in newsagencies is built around browsing. Bagging a magazine like Real Living, which is already struggling compared to Notebook, will not help sales.

Real Living is a feature magazine this week so my question about which version to promote is serious – do I feature the bagged version promoting 20% off or the version people can browse?

This offer sends a mixed message to newsagents and consumers which, I suspect, will not help the title achieve what it needs to achieve.

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magazines

Pink Ribbon magazine back in (some) newsagents

aww_pink.JPGIt is interesting to see the Pink Magazine back in newsagencies as a ‘tip on’ with this month’s Australian Women’s Weekly. I am curious if the move has anything to do with the kerfuffle last year when the Natuional Breast Cancer Foundation decided to distribute only through Woolworths / Safeway.

Pink Magazine is not in all newsagencies – only those tied in with the ACP magazines Connections marketing program.

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magazines

Newsagent ditches newspapers

Dominic Rushe writes at Times Online about the newsagent no longer selling newspapers. Here’s part of what Rushe has written:

When I asked in a state of shock where the papers were, he told me his days of selling newspapers were over. It was “too much bother” and “not worth it”, he said. I started to feel nauseous. Admittedly, I hadn’t had my breakfast, or a coffee, but this was too much.

“But you are a newsagent,” I stammered. “Where are the newspapers?” I left in a state of confusion, then doubled back to get to the bottom of this horror.

The people who distribute newspapers in New York are always late, said our man. “And they rip me off.” He was making 2c on a Post (cover price 25c), 5c on a Daily News (25c) and 9c on a New York Times ($1.25, or about €0.9). A plastic bag costs him 3c.

Be sure to read the rest here.

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Newsagency challenges

Display space clash

afl_record.JPGAs part of the ACP magazines Connections program we commit to weekly displays. Last week we received three display packs. Newsagents give over this display space for free – while supermarkets and others are paid for their real-estate commitment. We were able to do only one of the ACP displays since it was Grand Final week and we wanted to give the AFL Record prime position. This decision was right for our business yet it marks us down in the ACP Connections program. Anything which promotes newsagencies as the destination for magazines ought to be considered good and not just the efforts for one publisher.

Don get me wrong about Connections – it is an excellent program. Unfortunately, lazy newsagents only do Connections promotions and neglect the rest of the category and this does not serve the newsagent point of difference well.

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magazines

Mini magazine muddle

gf_mini.JPGNewsagents have two sizes of Girlfriend magazine this month: regular and compact. I think they are the same – the regular size is sealed and I am not about to open the pack to check. But they do have the same number of pages so I suspect the content is the same. The compact version is cheaper.

Having two versions of Girlfriend means newsagents allocate more retail space, another title to manage, additional stock cost and additional returns processing. I suspect that these additional costs will not drive sufficient additional sales – but I’m open to seeing how this goes. We are promoting the compact edition next to the regular size.

Not that I want to see Girlfriend promoted outside newsagencies any more than it is, my sense is that the compact edition is more suited to non traditional retail situations where it would work as an impulse purchase – a cosmetic bar or clothing shop maybe. Having it next to the regular edition where regulars shop for the title seems odd to me – but I’m just the retailer.

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magazines

Six Samsung printers to be won

samsung_p2.JPG

The text above is what we created and used as wallpaper for for the display in the photo below in our feature window. We are giving away a Samsung ML-2010 laser printer each week for the next six weeks. Every stationery customer gents a free entry with each purchase. We were given the printers as part of a deal through Edwards Dunlop – the people behind Double A paper.

Jane and Jason at our newsagency conceived and executed the display. It looks much better in person than my photo:

samsung_p1.JPG

Given the considerable effort we have put into rebuilding our stationery department, this giveaway is timely. The changes are driving good growth and this promotion will help that further. Giveaways in retail in the lead up to Christmas are not that common so it makes sense to us to go against that with this and another giveaway promotion. It seems to us that the Christmas retail season is the right time to reward customers.

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newsagency marketing

Target smokers

Smoking has not been a problem of us in over eleven years at Forest Hill. This week, with the new Target store oprning, we are fighting Target employees smoking right at the entrance to the mall near us and in the alcove at our back door.

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Uncategorized

Hot Ink driving sales

ink_hero.JPGInk is proving to be the hero category at the new newsXpress Watergardens store in which we are a partner.

Ink accounted for 16% of all sales in our first seven days of trading. The stunning back wall is acting like a magnet – drawing people down to the back. In most cases customers buy two or more cartridges. We only stock brand name product and this makes choice easier and eliminates questions about the quality of the product since the brand is the thing. What is interesting is that next to the ink we have technology product and that is being browsed by the ink customers. We have also located computer magazines next to the ink and technology wall – it seemed appropriate.

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Stationery

Handling walk-up resumes

I am sure we are not alone in receiving resumes from people walking in looking for a job. While it is time consuming, we consider each. If there is a candidate offering a perfect match of skills for our business we talk with them. This is rare. So, for most it is a no. We write to each, thanking them for their interest and advising our decision. Beyond the common courtesy of our approach I see it as good public relations – who knows where the walk in candidate knocking on your door today will be in five or ten years. We have a template letter so the labour component of the follow up is not onerous.

Our most recent new casual team member came to us by walking in with his resume. It was his follow up which got him the interview. Persistence pays off.

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Customer Service

High Performance Imports

imports_mag.JPGHigh Performance Imports is another example of the magazine supply model letting newsagents down. With a sell through of between 30% and 30% we are not cut back – even though the performance of the title is well below reasonable benchmarks. I suspect supply is not cut because of distributor commitments to circulate all stock supplied to them. None of that respects or helps my business. Labour and real estate are abuse by this supply. While Network, the distributor responsible for this title, have improved this year, they have a way to go – in the meantime newsagents lose money on titles like this. What makes matters worse is that if I early return stock, I still sometimes have to jump through time wasting hoops to make sure I get the credit this month.

The sooner Network manage supply closer to sales of these titles – outside the top 200 – then the better for all newsagents.

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magazines

British Homes and Gardens oversupplied

b_homes.JPGNewsagents should check their supply or British Homes and Gardens. If they are link me, sales are flat yet supply increases. I am happy to support a title to find new sales but the extra supply with this title does not make sense. The category is well served, space is limited. Magazine distributors ought not increase supply unless sales data absolutely supports such a move. But if you;re a regular here you have heard that from me regularly.

I question the relevance of these British home and garden magazines in Australia. Based on my check today we have too many titles.

UPDATE (29/9): We have decided to create a Best of British display at the counter next week to see how grouping all the British magazines together goes.

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magazines

A lesson in cardboard pays off

vivaldi.JPGI have learnt a lot about cardboard this week – the kind we newsagents sell by the truckload for school projects, welcome home signs, protests … all manner of signs and things. I always thought cardboard was cardboard.

This week I have learned about better quality product where the colour is all the way through – the process is called colour through the pulp. This stops the cardboard fading. I have heard about cardboard treated so as to not curl.

This is all important information because cardboard is an efficient and destination product for newsagents. Few businesses carry our range. The better the quality of what we offer the more we can charge and the greater the repeat business. The Canson product I have heard about this week is certainly impressive. Their knowledge will help better educate the retail team and better develop the value proposition for our customers.

Cardboard is pretty basic product yet it goes to the heart of the point of difference newsagents offer every day. We get to demonstrate our service levels, present the product well and make good a good return.

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Stationery

newsXpress announces rebate for newsagents

The newsXpress group (of which I am a Director) announced at member meetings this week rebates for members participating in its highly successful ink and toner promotions. This rebate innovation from newsXpress will go straight to the bottom line of participating newsagents.

Unlocking supplier supported rebates has been a holy grail for newsagents in the stationery space. While groups like Office Choice and Office National have unlocked excellent rebate deals for their members, newsagent owned warehouses, where traditional stationery deals have been negotiated, have failed to either unlock rebates from suppliers or pass on the rebates they are paid.

The newsXpress rebate arrangement reflects newsagent support and improves the margin achieved in the ink and toner space. Sales are very strong thanks to a consistent marketing campaign in 2007.

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newsagency marketing

Newsagents and online

Newsagents are starting to ask about and consider establishing websites to promote their businesses. Some have had sites for a year or more. As such consideration filters through the newsagency channel it would be timely for newsagents to look at how publishers are handling the online challenge. Jeff Jarvis writes about this at his BuzzMachine blog. He talks about the destination publishers need to create online. Newsagents cannot simply shift their offline model online.

On a different tack, Jarvis’ comments about paid content should sound an alarm bell to newsagents – our bricks and mortar model is built around a paid model.

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Newsagency challenges

Brisbane taxi hell ride

I knew I was in trouble yesterday morning when I got in the taxi at Brisbane airport and the driver didn’t know where The Glen hotel was. It was like a repeat of my experience Wednesday in Sydney but worse. This guy pulled over several times trying to use his street directory – refusing to let me find the destination. When it was clear he really had no clue he pulled over on the freeway and gave me his TomTom and asked me to get us out of the mess. What should have been a 25 minute journey took an hour an a half.

At the destination there was more. His credit card machine was broken. He asked me to take out his manual swipe thing and write up my own card – he could not write English. That took five minutes because the swipe thing was wedged in the side door pocket. Then we argued about tolls. $8 in tolls seemed excessive.

There is more – like being asked six times how I was, as if he had a loop track playing one of the few English phrases he had to ask.

As I noted yesterday, newsagents are like taxi drivers. The channel is judged by the last experience. The poor performers hurt not only their business but all of us. This is why marketing groups are important – members can break away from the newsagency shingle and build public awareness around greater discipline which backs the brand.

I don’t want my business judged as I now judge all Brisbane taxi drivers.

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Customer Service

Missing Rugby World Cup opportunity

rw_poster.JPGIt has been a challenge building a promotion around the Rugby World Cup in Melbourne. While we have embraced the promotional materials from newsXpress, we don’t have sufficient core product to make it really work for us. In an ideal world, I would have liked: a special edition of Alpha; a related scratch ticket game; some more feature magazines or one-shot publications; RWC tie-in in Zoo Weekly; and, an activity pack for kids to get behind the Wallabies. This collection of products would have helped make the promotion stronger in a state like Victoria where the connection with rugby is not as strong as elsewhere.

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newsagency marketing

Inside the magazine supply changes

Where I am, the current sub contractor picked up Australia Post contracts not long after they got the magazine contract.Of course, the Aust Post contracts require they be given priority, so delivery times have slipped from a consistent 2am to anywhere from 4am to 7am, with all the obvious problems as a result.Does anyone with authority in the freight company or the distributors care? Of course not!

This is a comment posted to this blog earlier today by someone purporting to be a contractor. I am trying to make contact to check the facts. If true, the comment explains why newsagents in Victoria are frustrated with the changes these past two weeks in magazine supply arrangements. Newsagents lose out. Customers lose out. All in the name of magazine distributors cutting costs out of the supply chain.

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magazine distribution

Report in The Australian on heavy newspapers incomplete

Sally Jackson, writing in The Australian today, reports that one issue newsagents are seeking to discuss with West Australian Newspapers, under a recently ACCC granted collective bargaining arrangement, is overweight newspapers.

Jackson neglects to report that this issue of unsafe newspapers was first raised in a study conducted in South Australia by respected ergonomist David Nery – as I blogged here ten months ago.

The ergonomic study, funded by the Australian Newsagents’ Federation, found that Advertiser Newspapers’ product was regularly overweight. It appears that the ANF is using information from the SA study around News Limited product to support its position on the OH&S risks of overweight newspapers. This is a good move on the part of the ANF and will be welcome by newsagents.

It would have been good to see Jackson’s report in The Australian document the findings of the Nery study – News Limited has had a copy for eight months as its SA newspaper was at the centre of the study.

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Newsagency challenges