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

Author: Mark Fletcher

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

Great US citizen journalism site

The Forum, a citizen journalism news site created by folks living in several villages in New Hampshire has just won a Knight-Batten Award for Innovations in Journalism. Great kudos for such a grassroots citizen journalism site.

It’s been a while since I wrote here about citizen journalism – my view has not changed. There remains an opportunity for newsagents to embrace citizen journalism and give people a voice. We have the geographic spread. It would reinforce our community connection and demonstrate how small business can make the kind of difference big businesses usually only talk about.

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Citizen Journalism

Cool mag from Jamaica Blue

jamaica_blue.JPGI like this magazine published by the people at Jamaica Blue and distributed through their outlets. It represents their brand well. Newslink have a smaller sized free magazine on the counter of their newsagencies. For several years newsagents had N-mag – a good over the counter giveaway title published by the ANF and subsidised by suppliers – this was the size of the Newslink magazine.

Today newsagents have nothing and I am wondering if it might be time for us to be in this space again. The challenge would be to publish something which works nationally. Given the considerable difference in what is a newsagency I suspect that it is a project best left to the marketing groups – where products and services are likely to be more consistent.

What I like about the Jamaica Blue publication is that it is readable with real articles and not just glorified advertising. Now, if only their coffee…

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newsagency marketing

Free copy of BRW

brw_sep26.JPGThanks Commonwealth Bank for the free copy of BRW which arrived in the mail at the office yesterday. Don’t know what I did to deserve the gift – I am not currently a Commonwealth Bank customer.

The giveaway made me wonder how many free copies of BRW and other titles are sent out each week. As a newsagent I’d love it if these giveaways came with a pitch of – get BRW every week at your local newsagent! BRW is one of those titles, for me at least, where I’ll read it on impulse so a reminder that a retail purchase at a newsagency may fit my readership choice could work well.

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magazines

Kangaroo delays magazines

The truck carrying magazines on the Albury run this morning apparently hit a kangaroo, putting the truck out of action and delaying supply of the Wednesday delivery for most of the day. It too k an email from me to a management person within Gordon & Gotch to find out what happened. That was at 1:30pm. Newsagents had been waiting for their magazines since before 6am.

I would have thought that in this era of modern communication newsagents could have been informed sooner than seven hours later.

Given the sales decay of weeklies in newsagencies, the impact of the accident today will not be recovered. Many of those customers will have got their Wednesday fix elsewhere – especially with no visibility as to when newsagents would have the stock.

I don’t know how the kangaroo is doing but I suspect not well.

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magazines

Sydney taxis and newsagents

I had a taxi driver in Sydney today who did not know where Castle Hill was. The second time after he pulled over to look at the directory I intervened because he was going to take me on a spaghetti run. Then, he put the directory on the steering wheel so he could read it while driving. Nuts. This man should not be allowed behind the wheel of a taxi and he prejudices my view of Sydney taxi drivers.

My taxi driver is like the newsagent in suburban Melbourne who closes for an hour each lunchtime – and the whole afternoon if he feels like it.

We, newsagents and taxi drivers, are only as good as our weakest link.

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Newsagency challenges

iPod moment for newspapers

Mindy McAdams timely and thoughtful blog post, Looking ahead to the ‘iPod moment’ for newspapers and it’s excellent inspiration, a blog post by Charles Arthur ought to be read by Australian newsagents.

The iPod moment, when it arrives, will eliminate the current distribution model. Not this year or next but it will come. This is why newsagents need to be reinventing their businesses today – so we are less reliant on core traffic generates. not just newspapers but also lotteries and magazines. Our suppliers want to cut costs from the supply chain, they must to survive in a rapidly changing world.

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Newsagency challenges

Business round-table discussion invitation

I am hosting a series of business round-table discussions with newsagents starting next week. If you are interested in participating please email our bookings co-ordinator. Any newsagent wold be most welcome – regardless of the software being used.

The details are: Brisbane – Tuesday October 2 @ 10am; Sydney – Wednesday October 3 @ 10am; Melbourne – Tuesday October 9 @ 10am; Adelaide – Thursday October 11 @ 10am; Newcastle – Tuesday October 16 @ 10am; Perth – Wednesday October 17 @ 10am.

The session draws on years of working with newsagencies of all sizes and in all manner of locations and the business decisions data helps you navigate. We will also discuss how to use your shop to up-sell rather than the lazier approach they use in petrol stations.

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Customer Service

Micro managing magazines

mags_counter.JPGThis stand is proof that you can break merchandising rules and enjoy success.

Last Friday, I setup the stand with one column of men’s fitness magazines and another column with cat and dog magazines. I chose these deliberately as they are located a long way from the counter and not browsed often, they are not high sellers in my newsagency and there do not compliment each other.

In the five days since creating the display we’ve sold more of some titles from the stand than the traditional location. I guess that should not be a surprise – people are happy to spend money if the product appeals. The key is to get that product in front of them. Newsagents need to find display opportunities like this, at traffic points, to use the business itself to drive impulse sales.

The challenge of micro management of magazines is the time required. Rewards are there as sales of men’s fitness, dog and cat magazines from the stand show. I just wish we made more than 25% for the effort.

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magazines

mX Sydney expands distribution

mx_sep25.JPG

I’m in Sydney tonight and picked up a copy of mX, the free daily newspaper from News Limited, at Wynyard station. It fascinates me how many people approach the mX distribution team for their free newspaper. mX is part of the evening ritual, the habit in ingrained. Only rarely do the distribution team I saw approach a commuter – this is a shift from when the newspaper was first launched in Sydney.

mX must have an impact on paid newspaper sales in that it is educating people that mX is all they need in a newspaper. Every copy given away is a message that newspapers should be free. Newsagents ought to head from their shops to Melbourne, Sydney or Brisbane at rush hour to see mX distribution first hand. To many newsagents it will be alarming.

Today’s mX announces a swag of new distribution points in St Leonards, Bondi Junction, Kings Cross and Edgecliff. The story on page two says the new locations have come “after we received thousands of requests from workers and commuters in those areas who had seen mX, but had not been able to get their hands on a copy”. The article also announces that they are installing new stands for self service – made available through an agreement with CityRail.

mX is a successful newspaper franchise across our three largest cities. It will be interesting to see where it goes next or whether the current offering evolves in the existing cities.

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Newsagency challenges

Another newsagent locked out, take care

I have been in Sydney today and talked with another newsagent locked out of his computer system – he has no access to his business data. This is the risk of buying software with an annual licence fee and of providing others the ability to connect to your business without appropriate controls.

Now it looks like they will have to go to court to get their data unlocked.

If you are concerned about access to your data being blocked by your software provider ask that they disable any link into your business.

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Newsagency challenges

Cashless transactions to drive newspaper sales

According to a report by Phillip Stone, Associated Newspapers, publisher of The Standard in London, has announced the launch of a prepaid card with a loyalty component built in to drive sales of their newspaper. Customers top up online. Sales are tracked and rewards for loyalty added as value to the card.

This is something we have been working on within Tower Systems and would be keen to trial with a publisher – we can even manage top up in, say, one newsagency and, redemption from various other newsagencies.

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Newspapers

French Provincial to launch Friday

french_provincial.JPGFrench Provincial is a new title being released this Friday through Gotch. I found out about it when the publisher contacted me last week through this blog. An Australian magazine, French Provincial is designed to appeal to people interested in everything French. There is a strong emphasis in furniture, decor and food. Gabriel Gate writes for the magazine. It is from the same team behind Finally At 40 Life Begins.

If home and luxury decorating titles do well in your newsagency – think World of Interiors – then French Provincial should do well. Check with Gotch to make sure you are due to get stock.

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magazines

Successful ink campaign

We’re well into the next round of ink promotions – it’s working well, driving new customers to us, brochure in hand and asking about specific product. Regular promotions are critical if newsagents are to overcome the view exposed in consumer research that newsagents are expensive. Most sales involve two cartridges or more.

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Stationery

Wedging Krystal

wedge_krystal.JPGI feel bad but I’ve had to wedge Krystal’s 2008 calendar in between a stack of Zoo Weekly copies this morning. Zoo buyers are Krystal’s market so locating here nearby made sense. We were sent two Krystal calendars and without anything on which to display them and given that they are the only calendars in that category, I decided the wedge with Zoo was the best approach.

Publishers need to think through these things before they send stock out to newsagents. We finalised our calendar model months ago. Every extra, unrequested, title does not have a space – meaning we lose time working out where to put her. No wonder newsagents get frustrated with suppliers sometimes.

I am certain that this problem, and others I have blogged about here today, would be resolved faster if suppliers worked in a newsagency and had their own money invested. I know that my software company made some significant enhancements when we bought a newsagency.

Hopefully Krystal will sell quickly from her home wedged in Zoo.

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magazines

The magazine model fails again

get_up_go.JPGOur sales of Get Up & Go magazine have been consistent at under 5 copies a month. There was no justification in increasing our supply from eight to ten – certainly not in the sales data. The only reason I can see for increasing our supply would be that the distributor has excess product and it saves their cash if they shift that product to newsagents regardless of whether it will sell.

There has been talk this year of magazine distributors and publishers signing up to performance guidelines. This 20% increase in our supply of Get Up & Go should breach any such rules. It is not the only title where supply is increased despite sales data suggesting there should be a reduction.

Magazine distributors are critical of newsagents and lack of compliance on IT matters. Why should a newsagent comply if such compliance counts for naught when it comes to determining supply allocation as appears to be the case with this title.

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magazines

Photoshop User magazine sucks cash

p_shop.JPGPhotoshop User is a problem title. The price of $32.95 ought to have knocked it out of the newsagent supply chain – that and the fact that Photoshop titles are not selling.

We’re returning it today, weeks after not selling any copies.

This is a perfect example of why newsagents need a magazine czar or some other legally recognised mechanism which controls the titles which have access to ourt network. We cannot rely on magazine distributors do do this for us.

If Photoshop User was not billed until after recall with me only paying for sales (none) then I’d be happier.

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magazines

Learnings for newsagents from Sophie Randall

Further to my posts here last week about the new newsagency at Watergardens in which I am involved, aspects of that new business owe their inspiration to learnings from the Sophie Randall model which we launched seven months ago. Sophie, even though a card and gift shop (no newspapers, magazines, lotteries, stationery), has provided excellent learnings about card and gift buying, learnings which can apply to newsagencies as they are reinvented.

sr_front.JPG

We are even applying some Sophie learnings in our newsagency which is in the same centre – on a different level. We are also sharing the learnings with newsXpress members.

Now, more than ever, newsagents need to experiment outside their comfort zone. This experimentation needs to pursue better margin and greater control – to replace fixed margin product which will fade from the newsagency mix over time(lotteries, newspapers, magazines) and to balance the newsagency business away from supplier domination as has been the case in the past.

These are strategic moves which will provide for a bright future.

Our next Sophie location will be Epping Plaza followed by Melbourne Central.

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Greeting Cards

Great Walks magazine a newsagent exclusive

great_walks.JPGGreat Walks is a timely new title for newsagents. As I understand it, it’s exclusive to our channel – this appeals. Great Walks taps into a greater community awareness of health and fitness and an interest in walking as good for the body and soul. The media kit at the Yaffa Publishing website has some good background on the title which might help with in-store promotion.

The challenge is where to place the title – I think it will get lost in the outdoor, leisure, travel or sports sections. I see it more as an impulse buy for people looking for something different.

Great Walks is being promoted heavily to bush walking clubs around Australia. This should make newsagents a destination for walkers looking for the new magazine created just for them.

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magazines