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

Author: Mark

Increased Mandarin support and assistance for newsagents

My newsagency software company Tower Systems pioneered offering Mandarin support for newsagents seven years ago.  I am thrilled to note that Tower recently increased the Mandarin language support for newsagents with the creation of a new help desk role.

This new position helps all newsagents.  Mandarin speaking newsagents receive better service in a language with which they are more familiar.  Non Mandarin speaking newsagents have access to more  resources as less time is being spent on calls with Mandarin speaking newsagents.

Tower Systems finished the 2010/11 Financial Year in excellent shape, having welcomed many newsagents to its 1,700+ strong newsagent user community.  While some were greenfield sties, newsagencies without a system, many switched from other systems – POS Solutions being the most common newsagency system newsagents switch from.

One reason newsagents switch is the high quality of support.   The commitment of the company is evident in its investment in enhancing Mandarin support services.

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newsagent software

Q2 2011 Newsagency Sales Benchmark Study Invitation

I am looking for data from newsagents for my next Newsagent Sales Benchmark Study. While I am primarily interested in data from the 1,700 newsagents with newsagency software from Tower Systems, I’ll happily work with other newsagents on their data.

Participating is easy. Run your Monthly sales Comparison report with Apr 1, 2011 – Jun 30, 2011 on the left and Apr 1, 2011 – Jun 30, 2010 on the right. TICK THE CATEGORY BOX as this provides an excellent breakdown to allow more thorough analysis. Please do NOT tick the supplier box. Save the report as a PDF. Email this report to mark@towersystems.com.au.

I need the data by next Monday, July 4 as I’d like to publish top line results by Friday, July 8.

I have been doing these sales benchmark studies for years.  The results have been supported by audits and other studies produced by others.  The purpose of my benchmark study is to help newsagents sport trends and this this make better informed business decisions.

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Sales benchmark

The Week offers a free trial copy in pursuit of subscriptions

theweek-free.JPGI noticed the ‘voucher’ for The Week inserted in The Age on the weekend.  I’d love to see the money behind this campaign invested in promoting the title in newsagencies.  I appreciate that this may be easier requested than done.  However, newsagents represent the best opportunity the publisher of The Week has at accessing incremental business.  We have excellent foot traffic, are the key retail channel for selling news related products, are connected with ur customers in a more personal way than other retailers and can respond to local type campaigns.

Here are a few ideas the publisher of The Week could consider:

  1. 50% margin for two months.  This would encourage better placement, over the counter promotion and greater attention all round.
  2. Trialling a lower cover price with margin dollar protection.  Say, $1.00 for a week with newsagents earning their usual commission at full price.
  3. Bonus margin for growth.  Lock in an additional 25% margin for every sale beyond the average weekly sales achieved.
  4. Giving newsagents a gift coupon for handing or mailing to customers so they can redeem a free copy of the magazine from the newsagency.
  5. Offering newsagents a cash bonus and 25% per issue commission for putaways committed to in store.

I am sure there are other ideas for driving newsagent engagement and lifting sales of not only The Week but other magazines.  Many newsagents are showing every week that they can lift magazine sales through creative and energetic engagement.  What we need is publishers on board and transacting with us as business people and not part of a logistics business.

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magazines

Promoting Tour de France magazine titles

mag-tdf.JPGWe are promoting botch Tour de France titles with full face half waterfall displays at shoulder height. This ensures that shoppers in our sports section will see the titles. They are certainly the hero titles among bike titles at the moment with this placement. We are also promoting the guide at the counter to drive impulse business for people not visiting and looking for Tour de France products.

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magazines

At $17.95 Royal Wedding one-shot: too expensive and too late

importedwedding.JPGWe received this Royal Wedding special title from Gordon and Gotch. It arrived weeks too late to be of interest to customers. And too expensive in our view. What is interesting is that the folks at Gotch decided to send us this title bot NOT send us any of the Tour de France title – we had to chase those.

Some magazine supply decisions don’t make any sense at all. As is usually the case with supply issues like this, the Gotch people will have an explanation. All I know is that it is newsagents which end up paying, through labour or cash flow, for these odd decisions.

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magazines

More broken Hello Kitty plates

kittymess.JPGThe latest part in the Hello Kitty partwork series arrived in-store yesterday and the plates in a whole box at one of my newsagencies were smashed – as shown in the photo.  What a waste of money and time.

Somewhere in the supply chain this stock is getting damaged and we are carrying part of the cost for this.  Most frustrating.

We are contemplating pulling the plug on Hello Kitty given the extraordinary failure rate of stock to arrive in a merchantable form.

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partworks

New magazine distributor IPS announces two month grace period for newsagents

New magazine distributor Integrated Publication Solutions has announced a two month grace period on the implementation of all business policies – to give newsagents time to become familiar with the new magazine distribution model.

This announcement is a gesture of good faith from IPS and will go toward addressing concerns expressed by newsagents on a recent thread here.

The key details of the IPS announcement are:

In support of IPS business policy to work with retailers, IPS will be offering a 2 month grace period on all business policies to assist you in becoming familiar with the new processes.

In particular if you are oversupplied of any publication due to a data migration error, IPS will allow the processing of early returns. Simply email our customer service team at customerserivce@publicationsolutions.com.au and advise them of the over supply and how many copies you would like ‘early returned’. Your account will then be credited immediately and your new standing order will be placed in the system. When the publication is recalled you must submit all tops (including those that have been “early returned’) for auditing purposes.

This grace period announcement is a practical demonstration of a point of difference in dealing with newsagents.

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magazine distribution

End of financial year checklist for newsagents

Today is June 30, a day which often passes newsagents by, many missing important housekeeping which is important to the business.  Here is a suggested checklist:

  1. Take a special backup of your business data tonight, make it your END OF FINANCIAL YEAR BACKUP and store it in a safe place.
  2. Print a debtors report, listing all debtors and their balances.  Actually, run this as a PDF and save paper.  It’s only the total which your accountant will need.
  3. Write off and bad debts.
  4. Write off any old stock which will never sell.
  5. Complete a stock take using your computer system ASAP and keep a record of stock on hand for your accountant.

While there are other tasks you could complete, there are not as essential as these two.  For example, I will be doing a year on year comparison and a quarterly comparison to check the sales health of my businesses.

My newsagency software company, Tower Systems, has been running end of financial year live online training for a few weeks now.  Its been a popular way for newsagents to ensure they are prepared.  there are two more today – anyone is welcome to join in.  Access is free.

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Newsagency management

Promoting Top gear magazine to women

mag-topgear-0711.JPGWe are promoting the latest issue of Top Gear Australia with this aisle end display at the entrance to our women’s aisle.

With around 40% of our Top Gear shoppers being women, it made sense to us to give promoting the title to women a crack rather than the usual men’s aisle placement for such a promotion.

We also have stock of Top Gear in the usual location in the men’s magazine aisle – to help our blind male shoppers who don’t like change and don’t see impulse display promotions.  Yeah, our male shoppers are less inclined to engage with off location impulse purchase displays.

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magazines

Promoting the Australian Women’s Weekly

aww-jul11.JPGWe are promoting the latest issue of the Australian Women’s Weekly with this display facing the dance floor.

We also have stock at the front of the store, in our weekly titles impulse display and the usual location – with women’s magazines – for the title.

We will pull back on all this promotional activity after the weekend, as inventory sells down.

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magazines

Are newsagents funding the Express Publications purchase of News Magazines titles?

One  newsagent this morning discovered a 600% increase in Overlander 4WD magazine from Network Services.  They have gone from getting three copies to seventeen, costing an extra $104.44 in stock for this issue.

Another newsagent has seen their supply go from five to nineteen copies – also a $104.44 increase.  Extraordinary.

I wonder if Express Publications has targeted a channel wide increase in supply.  Imagine if just half of all newsagents face a similar increase.  That would give Express Publications a cash flow boost of $208,000.  This could come in handy given that the company recently purchased magazine titles from News Magazines.

While this sounds like a conspiracy theory, I can’t see any reason for such an increase in supply, especially when you consider that both Express Publications and Network Services, their new distributor, have access to newsagent sales history for the title.

Overland 4WD is the first issue from Express Publications, it is one of a batch of titles acquired from News Magazines.  It has also shifted to Network Services from Gordon and Gotch.  Network was provided the sales history by Gotch so that exactly this situation could be avoided.

What makes the oversupply even more frustrating is that it has occurred one day before the end of the month.   This would not be a big deal if it only happened for one title.

This increase in supply is like someone has decided to get newsagents to provide a short term loan.  By supplying newsagents extra stock many will just pay up and take the created when it eventually flows some months down the track.  It’s like newsagents at the ATM – except that we dispense interest free cash.

This gross oversupply of Overlander 4WD is a reason some newsagents early return titles without careful consideration.  I know of newsagents who will target Network titles in retaliation. While it may seem petty, you can’t completely blame them.

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magazine distribution

Truckin’ Life supply frustration

The issue of Truckin’ Life magazine out today is the first from new publisher Express Publications.  I have heard from several newsagents already about a significant and unwarranted increase in supply.  The usual facilities and warning opportunities newsagents have to track a title have been denied with Truckin’ Life because the title has changed (with the placement of the apostrophe) and a new title code.

The behavior of a small group of publishers, facilitated by distributors, makes newsagents angry, frustrated and looking for ways to hit back – like with ill considered early returns.

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magazine distribution

Promoting Life Support magazine and showing the newsagent difference

mag-lifesupport1.JPGWe are proudly promoting the new Life Support magazine – with a good display facing out into the newsagency.  Life Support is a magazine supporting cancer patients and cancer research. The pitch on the cover is this it is an everyday guide to living with cancer.

Life Support  is an ideal title for newsagents to promote as it connects us with our community in a personal and heartfelt way in which our competitors, supermarkets, convenience stores and petrol outlets, are unlikely to engage.  Yes, in addition to doing good, promoting this title makes commercial sense.

I know that there are some newsagents who don’t to display the title because of its connection with cancer.  I see that as a negative view.  This magazine is about living.  Life is in the title.  It is a positive product for us to carry.

There was a time when there was considerable stigma associated with diabetes.  Diabetic Living is now a popular magazine.

I’d encourage newsagents to support this magazine … display it with pride.

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magazines

Promoting second tier crossword titles

mag-crossindy1.JPGWe are promoting what we would call (without disrespect) second tier crossword / puzzle titles with this display in our crossword section.  This double pocket display is at shoulder level and is easily shopped.  It looks stunning.

I chose to promote these titles as each serves a strong customer base already and represents a point of difference for us over nearby supermarket magazine outlets.

We all need to do more of this, promoting the difference in our our magazine range compared to other magazine retailers.  My view is that displays like this are more valuable to our businesses than the national billboard displays publishers tend to prefer.

I am seeing double digit growth for crossword titles and this is in part due to unique promotions like this one.

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crosswords

EFTPOS fee hike challenge

In 2010, banks increased their fees on business by 13% to $6.9 billion. In 2011, banks decided to increase the interchange fee for EFTPOS transactions by 10 cents, except for Coles and Woolworths. Now, small and medium business customers of the big banks face competing in an even less balanced playing field.

We need to ask why the big bangs have worked together to create a fee increase which is certain to hit small businesses but not Coles and Woolworths.

Tyro, the broadband EFTPOS payments company used by more than 700 newsagents, has published a press release which goes into more details on this.  Click here to access to press release.

Newsagents need to ask their banks about their role in this fee increase and whether the higher interchange fee will flow to fees we pay.

NAB is spending a lot of money saying that they have broken up with other banks.  On this issue, they have not.

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EFTPOS fees

Hello Kitty plates broken

hello-kitty-smashed.JPGNine of the plates we received of the latest Hello Kitty partworks issue were smashed. A whole box.  Now we have to go through a messy process returning the broken stock and waiting for replacements.  Looking at the items and how they were packaged with no protection against damage in transit, it is no wonder plates were broken.  Someone screwed up and we are carrying the cost as a result.

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partworks

Selling out of MasterChef magazine again

mag-mchef1.JPGOur promotion of the latest issue of MasterChef magazine (with the free Junior MasterChef cookbook)  is paying off.  We sold out of the entire first allocation in two days.  We are now a couple of copies away from selling out of the next delivery which was double the initial allocation.  We have ordered this the initial allocation quantity again.  By the time we are done with issue we expect sales to be up 400%.  So much for a title which some newsagents said would not sell.  Our approach has been simple – an aisle end display (see photo) for the first week plus a stand at the front of the store, facing into the mall, and stock with food titles.  All we have now is the stand at the front and a pocket with food titles (when we have enough stock).

We know of shoppers coming to us because they know we have stock and will get more in. This is a key aspect of our business plan, making sure we order more stock of hot titles so we don’t sell out.

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magazines

Promoting Melbourne Kitchens & Bathrooms

mag-bathkit-jul11.JPGWe are promoting the latest issue of Melbourne Kitchens & Bathrooms with this half waterfall feature in-location display. As I have written previously, this it a successful title for us, delivering an excellent sell-though within the first few weeks of the on-sale.  The key is to get shoppers looking at the cover – hence the prime placement next to popular titles.

We will also give this title a run on our weekly magazines impulse purchase unit.

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magazines

frankie selling very well

mag-frankie-july11.JPGWe have a simple display of the latest issue of frankie magazine at the counter as well as three pockets of the title in its usual location.  Sales have been excellent.  We are on the way to selling out with around a quarter of the initial allocation left.

We have ordered more stock so that we don’t sell out.

frankie is attracting new shoppers to our newsagency.  There is no doubt about that, we are seeing this with each issue.  We are facilitating this by promoting the magazine outside it’s usual space – letting shoppers see that we have the title.   We are building sales of other titles off of the new traffic being generated – through careful placement near frankie.

I am confident that our sales of this issue will be close to double what they were a couple of issues ago. While this is being helped, in part, by the demise of Borders (we have a store nearby), it is also being helped by the increase in attention we are giving the title.

frankie is a title for newsagents to watch and manage as it promotes the newsagent point of difference.

Morrison Media, the publisher of frankie, has promotional collateral available at their Morrison News blog.

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magazines

Age Good Food Guide missed opportunity

agegoodfood1.JPGFairfax needs to reconsider its distribution model for its food guides.  The coupon on Saturday’s newspaper caused more frustration since not all distribution newsagents took up the opportunity meaning that not all retail newsagents had the title.  There is no point promoting something on the front page of the newspaper which is not readily available.

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Newspapers

News Ltd newspaper home delivery fee increase is socially irresponsible

News Limited businesses The Herald and Weekly Times and The Geelong Advertiser this week announced agreement to permit a 5% increase in newspaper home delivery fees for their products.

While any increase is better than none, this paltry increase is socially irresponsible in my view.

How this situation can exist is appalling. This massive multi-billion dollar corporation which derives the bulk of its revenue from advertising controls the entire income stream newsagents earn from newspapers (cover price and delivery fee).

Newsagency distribution businesses, as commercial enterprises, ought to be able to set their own fees and through this control business performance levers. The current situation, where there is no control over revenue and only limited control over costs leaves newsagents to continue to perform as indentured slaves.

The introduction of the Modern Award has significantly increased costs for newsagents. Fuel prices have risen yet News Limited knowingly agreed to a newspaper home delivery fee increase which does not permit newsagents to pass on even these basic operating cost increases.

This right wing organisation which invests thousands of gallons of ink in deriding Julie Gillard and pretty much all Labor politicians as harming Australia and the Australian economy is killing the newsagent operated newspaper home delivery business with this tight-arse decision.

If the company was true to its right wing core it would not approach newspaper home delivery in the socialist way it does today. It would agree to a genuinely free market approach: a fair fee for a good service. Newsagents know that customers would pay. They also know that the market itself would set the price.

News Limited is hurting small business newsagents and their families and employees. They are reducing newsagents to working for less than a basic wage.

But you won’t read about this socially irresponsible behaviour in the News Limited press.

How dare they sit in their high-rise offices and decide what is fair for the newsagent in the trenches managing the delivery of newspapers?

Maybe that is harsh. Probably so. I hope it has got attention.

I sold my newspaper distribution business years ago because I saw no upside in newspaper home delivery for a business my size.

The number of newsagents giving away or walking away from their home delivery businesses has increased. This is a message publishers are yet to grasp. But maybe they have and maybe that is why the percentage fee increase is less than necessary to keep ahead with costs.

I’d love the people in News Limited who were responsible for this decision to front an open forum where they can present the merits of the decision and submit themselves to debate. I would be there for sure!

Newsagents need to put food on the table for their families and the families of employees. The decision by News Limited leaves newsagents financially worse off than a year ago. This is not just. It is socially irresponsible.

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Newsagency challenges

Making the most of Miley Cyrus visiting town

ma-mileyconc.JPGWe have been promoting the Miley Cyrus one-shot as well as Dolly with Miley on the cover at the counter for the past week in the lead up to her being in town.  While not driving massive sales, we saw shoppers add one or both titles to their purchases on impulse at the counter as a result of this display – proving that newsagents can drive incremental magazine business.

One newsagent I spoke to earlier last week told me he returned the Miley Cyrus one shot because it would never sell.  He never even tried it.  His data showed success for the Hannah Montana calendar but he never connected the two.   This ties back to my post a few days ago about early magazine returns.

Click on the image to see a larger version of the display.

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magazines

Pink cover story drives Who sales

mag-whocounter.JPGWe followed our own advice and put Who magazine at the counter in my newsagencies and saw impulse purchases as a result of the Pink cover story and her new baby.  Nothing complex here – a simple placement so that shoppers can see the full cover at the sales counter … a nice and welcome addition to any sale.

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magazines
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