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

Author: Mark Fletcher

Trading Post ad cover up

nsw_trading_post.JPGI feel sorry for the person from McGraths Hill in NSW advertising the Millard Horizon 2002 campervan in this weeks Sydney edition of the Trading Post. The advertising folks demonstrate that money speaks and cover the Millard Horizon ad with a post it type ad for NRMA Insurance. It is not a good look for NRMA – big business paying to cover up a regular person’s ad.

When you rip the NRMA ad off, part of the text for the Millard Horizon ad comes with it – in my case I cannot read the phone number. I don’t like the stuck on ads. They are either desecrating revered mastheads or showing individual advertisers, as in the case with the Sydney Trading Post, that they don’t matter.

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Newspapers

Ten percent off stationery in Victoria

newspower_gns.JPGThe Victorian branch of GNS, the stationery wholesaler owned by newsagents, is offering a 10% discount on a stationery order to any newsagent joining Newspower, the marketing group for newsagents now controlled by GNS, in July.

I own shares in GNS as do most newsagents – I acquired the shares, units back then, as part of a mandatory levy on every purchase through GNS. It is disappointing that GNS is using profit from my business and other non Newspower newsagents to support Newspower and that they are doing this while blocking competition. As I blogged here last week, GNS has banned newsXpress from its trade shows, the only trade shows for newsagents in Melbourne, Sydney and Brisbane.

Newsagents are benefiting from competition between Newspower, newsXpress, Nextra and others. Each group is improving its offering as a result of competition. A strong Newspower would not need protecting nor the 10% stationery discount deal like is being offered in Victoria at present.

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marketing

The MX free newspaper distribution model

mx_june27.JPGIn Sydney tonight I detoured into Wynyard station to see the MX free daily newspaper distribution model in action there. In addition to the free standing collection points as shown in the photo, I counted eight people in a short space offering free newspapers to everyone heading home from work.

The people distributing MX seemed more proactive – and much happier – than the people I saw handing our the free newspapers in London late last year.

Newsagents in Melbourne, Sydney and Brisbane ought to make a field trip one weekday afternoon to see the MX distribution team in action., Given the growth of free daily newspapers overseas and the growth of free magazines here, being aware of this distribution model and seeing it in action may trigger much needed focus on your own plans for the future.

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Newspapers

Newsagency now selling cosmetics

Newslink in the Virgin Blue terminal at melbourne airport has given over one aisle end to a line of cosmetics with a promotional tag of: as seen in In-Style. While I do not expect traditional newsagencies to make such a move, this is an interesting expansion of the usual Newslink offering.

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magazines

Tradie – free magazine for tradesmen

MediaWeek reports that the team behind Men’s Journal has launched Tradie, a magazine aimed at tradesmen who work on building sites on the east coast of Australia. The print run is over 50,000 with copies being distributed through Mitre-10 stores and direct to building sites. From what I can find out online – through MySpace entries and other forums – Tradie is in the same genre as Zoo Weekly, Picture and People but from a tradesman’s perspective.

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magazines

Bonus product pushes stationery

double_a.JPGA feature of the current Tax Time Bonanza! stationery promotion is the bonus product on offer. For example, anyone buying a box of Double A copy paper get a free file Porta Box valued at between $12.00 and $15.00. This bonus offer is exclusive to newsXpress, meaning no one can compete. It is more valuable for me to have this exclusive hero product offer than, say, Reflex paper which other retailers have on special regularly. Newsagents need a point of difference in their stationery pitch given that Australia Post corporaste stores and others are competing agressively with a newsagent type offering.

The free bonus pitches the copy paper at the home office market. It offers a practical bonus product Anyone buying a GBC CL90 laminator gets 25 A5 laminating pouches free.

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Stationery

Dynamic Business dual cover mix up

dynamic_business.JPGThe photo shows the front and back to Dynamic Business. The challenge is which side do you give the facing to? Given how is arrived in the bundle our team thought it was an export title and considered it to be of little interest to our demographic. Flip it over and there is the better known masthead. While the label generated by the point of sale software provides the details.

Sometimes, on a busy magazine day, there is little time to read the detail of the labels. We sorted it out and now display Dynamic Business as opposed to some obscure export title – I wonder if others had the same experience. This is not the only title to have a dual cover. When publishers do that it would be good for newsagents to be provided a heads up which includes the reasoning behind the decision and suggested action.

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magazines

Bread Day shows how Magazine Week could work

bread_day.JPGAs the Bakery Australia website says, The National Bread Day has been conceived to popularise the consumption of bread across the country by creating awareness of its dietary and nutritional values. Brilliant.

As I blogged here a month ago, in the UK they have Magazine Week for similar reasons – to popularise magazines. Indeed, at their website they say: We started Magazine Week because we wanted everyone to know just how big and diverse the UK magazine industry is, with a magazine for every available lifestyle, hobby or interest. Brilliant again!

Newsagents could launch magazine week and own the concept in consumer’s minds. If we got the pitch right we should see a sales kick and greater loyalty to our channel compared to the other channels selling magazines. Key to such a week or a day is to have the pitch right and consistent across the channel and to support this with a giveaway – like the Bakers Delight booklet given free to every customer today (see photo). Brilliant.

If we are the magazine specialists we need to find a way to own that concept. A Magazine Week or a Magazine Day could do the trick. If publishers, the MPA or associations get behind this, I’d love to be involved.

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magazines

Using posters well

We capped our magazine area with over thirty metres of light boxes for magazine posters when we moved to our current location five years ago. While I’d prefer to have LCD screens capping magazines, these light boxes still work well. They look especially good when publishers make sure we have sufficient poster material to boldly promote a title. The issue of Australian Womens Weekly out today is a good example.

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As is the current issue of Better Homes and Gardens.

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This is bold in-store support above and beyond the aisle end displays, co-location and front of house posters demonstrate the difference between a newsagency and, say, a supermarket or convenience outlet selling magazines.

Publishers need to keep good quantities of these materials flowing for without them newsagents cannot create good display and fill their light boxes.

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magazines

Eftpos poll updated

The eftpos poll is three days old. Of the 147 who have voted so far, 100 of those voting, hopefully newsagents, say they do not charge any eftpos fees. 36 charge under 50 cents, 8 charge a percentage and 3 charge $1.00 or less. I am surprised at the range and that so many newsagents do charge a fee. Here is the link if you have not voted yet:

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Uncategorized

The new adult magazine area

new_adult.JPGEleven years ago when I bought my newsagency we had one and a half metres of adult magazines. Today, we barely have one column – not counting the column with Zoo Weekly, Ralph and FHM.

The photo shows the new adult section as I see it in an average newsagency.

While different demographics will require a different range, sales data I see from other newsagencies suggests that a column or less is all that is needed to service the adult category. The Internet and the establishment of petrol outlets as a viable magazine channel mean that adult is not the category it was for newsagents eleven years ago.

It is disappointing that some distributors continue to overload some newsagents in the adult category by supplying more product than can be justified by the sales data. Often, when this is brought to their attention, they fix the problem. This should not have to happen, distributors ought to scale back based on the sales data and not a complaint from a noisy bugger like me.

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magazines

The spinner stays

activity.JPGSpinners are a nightmare in retail. They block sightlines and can make a store look messy. We removed several last year and vowed we would not bring in. All we kept were two sticker spinners – which work a treat. Two months ago we relented and agreed to a trial – for the activity books spinner in the photo. These activity books are performing better in terns of sell through, return of floor space and return on investment than half the magazines we carry.

We have carried activity books in the past but without the success of this range.

We have looked at whether we could locate the range elsewhere and remove the spinner. The challenge is that the spinner itself allows us the ability to move the product. For example, is school holidays we located it near our activity table, during the Tax Time Bonanza! sale, it is near that display … and so on. Watching customers as they browse and buy off the spinner, it is clear that it needs to be in a high traffic area. So, the spinner stays for the moment, for as long as we see a commercially viable return.

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retail

Mad magazine bagged

mad_magazine.JPGBoys of all ages love to browse Mad magazine (yours truly included) so imagine the shock to find this issue wrapped in plastic. No, it not is full of adult images, they have sent two free issues with this current issue.

While the freebies are a nice gesture, the plastic bagging will hurt sales, or lead to trash, since Mad is highly browsed.

The best alternative I can think of would be to have the giveaway product at the counter and a sticker on the cover promoting this. At least browsers would be satisfied.

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magazines

Inspiration from small spinners

One of the biggest challenges newsagents have when bringing in a new line is location. Too often the product is displayed in such a way that makes finding the right location difficult. Such was the case with the inspirational cards and mini books. We have these for several years, in one form or another, but it has only been in the last few weeks that we created a small display at the end of one of our card aisles that they started to work for us. Here is a photo of what we did:

minatures.JPG

The easy comment is that we should have done this ages ago. Time and space were a challenge. It was only when we moved the Darrell Lea display from this aisle end and bought the table that we were able to use the space in this way. Now, instead of having these small, and annoying, spinners spread in various places, we have them grouped together. As well as each line selling better, we are finding customers buying two or three.

Our message for sales reps out of this is: as well as promoting product, show us via photos how to best display it in a busy and real-estate poor newsagency. Otherwise the spinner gets shoved from pillar to post, as we did, until either it is tossed or re-born when space and time provide the opportunity.

Our message for ourselves is to pay more attention to the stock we have and to keep working categories until we find the best way to display them in our store so that we achieve the return we need.

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Greeting Cards

Private equity and Australia Post

It has been suggested to me that the media speculation of two weeks ago about the future of government ownership of Australia Post may have been half right. I am told that one proposal is a management facilitated buyout of the retail network, leaving the distribution business in government hands. While such a move would not address international best practice in terms of the postal service, it would put significant dollars into the government coffers.

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Australia Post

Tax time stationery deals

We have followed the GNS Mid Year Sale with the newsXpress Tax Time Bonanza! sale. The range of products is quite different. The Tax Time offer has more branded product. It also extends my range into areas where newsagents have been weak. I particularly like that I have a paper offer which is not matched by Australia Post, K-Mart and others as happened with the GNS sale.

tax-time-for-blog.jpg

We have a long table on our dance floor with all the products. Traffic is being driven by the promotional flyers distributed around the centre and at the front of our shop.

This is the second of these two page flyers we have distributed under the newsXpress banner this year. The regular pitch of stationery in these flyers is important, in my view, to re-educating consumers about newsagents, particularly newsXpress newsagents, and the stationery range and price offers – built around brand name product.

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Stationery

Welcome price increases

On the weekend I blogged welcoming the price increase for the Sunday Herald Sun. While newspaper publishers continue to be shy at adjusting cover prices even to keep up with CPI, magazine publishers are not. Auto Action, Picture Premium and Rugby League Week all have cover prices coming. Keeping up with CPI helps newsagents keep up with rent and wage rises. If only the newspaper publishers understood that.

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magazines

Magazine headers stand the test of time

magazine_header.JPG

How is this for a bit of nostalgia? John Klemm from Mildura send me this magazine header which he has had in his newsagency for around twelve years. At Tower Systems we started creating these personalised magazine headers 15 years ago as a serving to our software customers. They were the first of their kind, long before the marketing groups and MPA got into the space. We created these headers for around 150 newsagents.

The idea behind the headers was to help customers differentiate between the sea of titles in newsagencies. From a software perspective we used the provision of the headers to drive better category management and title placement in Tower newsagencies. We saw this as an appropriate way for us to engage with our customers and demonstrate how point of sale software can be more than a glorified cash register.

The header for Small Business which John sent me last week has held up well compared to some of the headers I see in newsagencies today. It certainly says something about the quality of the computer printer and ink we were using at the time.

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magazines

Sudoku for Dummies, newsagency edition

sudoku_newsagency.JPGMy initial reaction upon seeing Sudoku for Dummies was that newsagents cannot compete on price with bookshops. Then the text, Australian Newsagency Edition, was pointed out to me.

Having a Newsagency Edition allows us to promote this as an exclusive title. It also stops price comparison.

Newsagents ought to actively promote their exclusivity with this book. We have the title in a good position next to our range of sudoku titles.

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Book retailing

Australia Post retreats from online bill payment

The Australian Financial Review today reports that Australia Post is scaling back its online bill payment service. While it is not good karma to rejoice at the hardship of another, I say good on Bpay for beating Australia Post in the online bill payment game.

Newsagents entered the over the counter bill payment space in 2003 in partnership with Bill Express. The Government owned Australia Post engaged in all manner of blocking tactics to stop the small business network from competing. One tactic involved a claim of intellectual property over the barcode billers printed on their bills.

Today, more than three years on, newsagent over the counter bill payment transaction volumes remain small compared to Australia Post. I would say that this is, in part, due to the aggressive stance taken by the Government business.

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Australia Post

Eftpos poll

I have setup a poll to find out how newsagents handle eftpos fees. Once you click vote the free polling software will take you off the blog and show the results so far.

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Uncategorized

Glam, the magazine of the future?

glam.JPGAs the stats in the graphic show, Glam.com is hot. According to commentators, Glam is not the #1 internet site./network visited by US women. Venture Beat has a full story about Glam and its success.

One must ask if Glam is the women’s magazine of the future? Is this what will replace Madison, Cleo, Cosmopolitan and Marie Claire? While just about everyone reading this will say no, the visitor stats to the Glam website speak for themselves. 17 million in a month is amazing readership.

The key to the success of Glam appears to be the 350 magazines, websites and blogs make up its content network. This provides content diversity.

Glam is demonstrating that here is an online audience and that advertisers want to connect with that audience. This will, naturally, see some advertising migrate from print media which targets the same audience, to online and, specifically, Glam.

Newsagents ought to take a look at Glam and compare it to magazines on their shelves. It is another reason newsagents need to be investing resources in navigating to the newsagency of the future.

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magazines

Treasures cards are a hit

treasures.JPGNever have I seen such excitement around a new range than I have seen with this Treasures range from For Arts Sake. We put this tall spinner of regular size cards and a small counter top spinner of gift cards into our new Sophie Randall Cards and Gifts shop last week and the reaction has been immediate.

While I was reluctant to bring in a spinner to what has, until now, been a spinner free zone, it is the best way to display the pop out cards. Browsers can easily see what they are buying without having to handle the product. Indeed, the spinner is one reason the interest has been so strong.

I was in the shop yesterday and was surprised at how many comments these cards attracted – particularly from women. They loved the detail and that they could browse the range without having to take each out to look at it opened.

The gift cards – not shown in the picture – are especially popular. The $4.95 price point is no barrier because, as one customer said, the card is part o the gift.

We did consider the Treasures card range for the newsagency but considered the card space there already at its peak in terms of range. Maybe in a few months we will fold out an existing range with this.

For the record, I have no stake in For Arts Sake. They have not asked me to write this post.

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Greeting Cards