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

Author: Mark

Leveraging the royal wedding

ukmags-wedding.JPGWe are co-locating a selection of British weeklies and monthlies toward the front of the newsagency, with our co-location display of Australian weeklies – to leverage the interest in all things British as a result of the royal wedding.  We see it as a good opportunity to remind shoppers who only enter the front half of the newsagency that we have an excellent range of British weeklies and monthlies.  With all the activity planned around royal wedding coverage over the next month, the opportunity to up-sell is considerable.  I’d urge newsagents to seize the opportunity of the spike in magazine interest over this time.

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magazines

More coverage for newsagents on the EFTPOS issue

Brett Carey of newsXpress Deception Bay was just on Brisbane local ABC radio debating the head of EPAL on the issue of EFTPOS fees and representing the newsagent perspective.  More newsagents could engage on this issue and have the voice of small business better represented.

Click here to get the audio coverage.

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EFTPOS fees

Everything old is new again as retro products sell

nostalgiasells.JPGWe have been running another toy sale over the last couple of weeks and have noticed good interest in retro, ‘classic’, products – like the Magic 8 Ball and the Slinky and other products too.  We decided to focus on retro products given the interest in other retro products we have seen recently, like the classic Children’s Birthday Cake Cookbook from ACP – which continues to sell well by the way. Retro appears to be in and newsagency can play well in this space.

Nostalgia can be a strong factor in shopper browsing and purchasing.  I think this is what is driving sales of the two toys and other retro or classic products in-store.  It is also one reason some of the classic car magazines sell along with old train magazines.  Not the only reason but an important factor nevertheless.  There is a comfort in nostalgia.

From a newsagents perspective, there are plenty of opportunities in this retro / nostalgia space.

So, we’re happy to be finding success in focusing on nostalgia with our toy sale.

We run the toy sales to leverage good traffic generated by the key departments of greeting cards, magazines and newspapers.  The toys are competitively priced yet with a good margin.  Products are selected to leverage the type of traffic we see in our business.

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Newsagent representation

Tactical placement pays off for My Kitchen Rules

knoxmkr.JPGOur tactical placement of the counter unit for My Kitchen Rules The Cookbook worked a treat on the weekend.  While we had a display facing out into the mall, it was this unit placed between our two main newspapers which worked best for us.  A $12.95 impulse purchase with a newspaper purchase is very nice.  Thankfully, we have more stock coming in today.  Our plan for this week is to run a promotion behind the counter in the run up to Easter, replacing the Royal Wedding title which has had a good run in this prime location.  We will also have stock located with our women’s weeklies.

The reason we are committing so much space and time to the title is the promotional work by the Seven Network supporting the title.

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magazines

Moving the Royal Wedding title sells magazines.

wdwedding.JPGWe have been promoting the extra stock we received of the Woman’s Day Royal Wedding one-shot behind the counter for the last few days.  While we have had a terrific run I think we are nearing the end of the run for this title … probably because we are now so close to the wedding day people are holding off for coverage of that.  no matter, this title has been a terrific move by ACP, generating excellent impulse business for us.  We plan to still give the title tactical support, just not in this prime behind the counter position.

I’d note that this is the third major display location we have had for this title.  each move has helped us find new buyers for the title.  This is what we want from our obsession with moving titles around.

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magazines

This title should not have been sent to newsagents

weddingspeeches.JPGNetwork Services should not have The Complete Guide Wedding Speeches to newsagents last week.  We can source similar wedding speech guides through other suppliers and achieve a 50% or better margin.  We can even achieve this with a sale or return model in some situations.  Network has sent a title at 25% margin with an on-sale of fifteen months.  Sure, we only received two copies – they will say that is reasonable.  Well, no.  When we do a wedding display, a little later in the year, we will carry more copies of wedding speech titles, enough for them to be noticed in the display.  What are we supposed to do with two copies of a title which is too small for traditional magazine fixturing?  Seriously!  In our case, had we kept the title, we would be okay as we do not use traditional magazine fixturing.  Go into most newsagencies with this title today and I think you would be hard pressed to notice it among the magazine mix.

Network Services needs to do a better job in deciding what it will supply newsagents.  I understand the utter stupidity of that statement.  Network will do what is right for network.  The supply of this title and other titles shows that.

I’d note that some newsagents will have been happy to receive this title.  They rely on the magazine distributors to keep them stocked of this type of low volume fringe product.  However, there are more and more entrepreneurial newsagents who want to exert more control over the fringe areas of their businesses.  There is good money to be made by buying well. Sock like this, sourced through the magazine distribution model, is not bought well.

We early returned this title.

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Ethics

Golf and food and odd mix

golfdelicious.JPGI was surprised to see a copy of Delicious magazine bagged with Golf Digest last week.  Golf Digest promotes on the cover that it has a new look and new stories.  Someone new to the title cannot browse these as the title is bagged with the free magazine.  A poor choice by the publisher.  This re-launch issue should be browser friendly so that people can taste the new look.  They should have kept the free food magazine for another issue.   On the free copy of Delicions, it is an odd pairing even if they do target a similar demographic.  These comments aside, we have Golf Digest on full cover display in our golf section.

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magazines

Newsagent contributions here are appreciated by magazine publishers

More and more magazine publishers are using this blog as a resource for learning what newsagents think.  They usually find the blog through a Google (or other) search and then read all the comments posted by newsagents and others on a topic.

I have been contacted by three publishers this week, two in Australia and one overseas.  Each commented that they appreciated the frankness of views and that comments here had guided their plans for activity with newsagents later this year.

I mention this today as a reminder that readers who stop by here are interested in what newsagents think and to say thank you to those who do contribute comments.

As I have mentioned to publishers I have spoken with, I am happy to use this place to pass on genuinely valuable and useful information publishers are keen to get out to newsagents.

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Blogging

Susan Boyle and Kylie Minogue an unlikely couple

kylieboyle.JPGAs part of out Mother’s Day Book Sale we received this double pack containing the Kylie Minogue and Susan Boyle books wrapped together.  An interesting and unusual yet sure to sell pairing.  The distributor cleverly gave the pairing context with a sticker on the front linking the two as No. 1 HIT WOMEN. I can see it working well in the lead up to Mother’s Day.

We have this pack in a high traffic location to attract good impulse purchases.

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Book retailing

Promoting Unique Cars magazine

maguniquecars.JPGWe are promoting Unique Cars magazine with this in-location display in the men’s magazine aisle. Given space pressures and limited stock the display will be up for a week or less.  It’s the only display with men’s magazines  and therefore pulls good visual focus.

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magazines

Promoting My Kitchen Rules The Cookbook

img_0175.JPGAt one of my newsagencies (newsXpress Watergardens) the team created an excellent display this morning promoting My Kitchen Rules The Cookbook.

The display is on a column facing into the mall and is easily seen by the plenty of shoppers who pass by and enter the newsagency.  It is supported by a counter unit filled with  stock of the title.

We also have the title located with food titles.  This is the ideal title to co-locate – for the next week at least.  The TV coverage has been brilliant.  I am expecting excellent sales over the next three days.

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

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magazines

Do you want to sell out of magazines?

I want to sell out of magazines. I love it when it happens. Independent publishers I speak with love it too. A sell out is good. I it happens early enough in the on-sale I will order more stock. I’ve done that plenty of times.

The newsagent magazine distribution model is not designed for us to sell out. The distributors think that sell outs are bad. One distributor representative told me that publishers don’t like sell outs. I can’t find evidence supporting that view from publishers I have spoken with.

The kind of sell outs which I think are acceptable and for which I would not order additional stock are: weeklies – by day four or more; monthlies – by week three or more, sometimes week two depending on the title and the advertising support for the issue. I am not including anything beyond monthlies since I do not think that any title in a newsagency should have an on-sale of more than thirty days.

So, yes, I like selling out.  What do you think?

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magazine distribution

Frustrated with discounted weekly magazines

wd-bag.JPGI am frustrated by the number of bagged discount weekly magazine packs we are getting from ACP.  What started as a trial in 2009 now appears to be core part of their business plan.

While I understand that ACP would say that they are only sticking with selling discounted current issue magazines because they sell, I am yet to see data indicating that this move is financially rewarding for newsagents.

Think about it.  These discount magazine packs are an additional title for us to carry.  This means that we need to find additional retail space. Unlike other retailers, newsagents are not paid for space allocated regardless of sales.  I make that point to all publishers, not just ACP.  Further, There is no in-store strategy – not that I have heard at least.  We get the stock and do with it what we will.  This means it is often put on the shelf next to the regular prices issue – Woman’s Day in the case of the discount magazine pack in the photo.

My other concern, which I have expressed several to representatives of ACP, is that these discount current issue magazine packs educate shoppers to not pay full price for magazines.  I can understand a reward for above average loyalty – I offer this with my Magazine Club Card – but these discount magazine packs are not about that.  To me, they appear to be an attempt to prop up sales of a weak title … NW in the case of this week’s pack with Woman’s Day at the front.

I am concerned that ACP, and other publishers who try and sell on price ahead of content (the packs are sealed after all) will not be able to stop the strategy and that newsagents will be forever left with lower margin sales.  Yes, a sale where there would have been one is better than no margin at all.  I get that.  However, what about where we get a lower margin where we would have sold both anyway?  What about others who feel the need to go down price over content?

I’d like to see newsagents represented when these strategies are debated as they have a cost to the retail channel which I suspect is overlooked by publishers during such discussions.

Maybe there is more to this than I have considered.  Maybe discounted current issue weekly magazines are good for newsagents.  Maybe newsagents like them.  The door for debate here is open, come and weigh in…

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magazines

Co-location boost sales of Diabetic Living

magdiabeticliving.JPGWe are promoting the latest issue of Diabetic Living with this aisle end display as well as with placement in the health, food and women’s weeklies section.  We aisle end display will get five, maybe seven, days.  The co-location of Diabetic Living will run for a month as we know that the title performs well with the weeklies as well as in health and food – what many newsagents consider to bee the more natural locations for the title.  We will probably give the title a run with daily newspapers for a few days during the on-sale, we can usually pick up some good impulse business there.

Managing magazines is all about constant moving of titles and chasing impulse business.  These are all business decisions which should be made by someone senior within the business.  Treat magazines at a lower level in your newsagency staffing structure and the results will most likely show the impact of that – unless you have someone smart committed to magazines who is probably not getting paid enough.

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magazines

Promoting Home Beautiful with in-location display

maghomebeautiful.JPGWe are promoting the latest issue of Home Beautiful magazine with this simple in-location display.  The issue is out only couple of days and its is selling.  Nice.  I know I have aid it before but it is well worth noting – sometimes the simple in-location displays deliver more incremental business than the type of big attractive and visually noisy power end display that the magazine publishers like.  All I want is to sell magazines.  Whatever works … works for me.

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magazines

MKR the launch of 2011?

mkr.jpgMy Kitchen Rules The Cookbook which goes on sale tomorrow is set to be the launch of 2011 if queries at the counter and pre-orders are anything to go by.  The interest expressed by shoppers is extraordinary.  The most common query is whether we will have enough stock, many promising to be in early tomorrow morning to collect their copy.

Pacific Magazines and the Seven Network have done an excellent job in generating interest prior to the launch.  We have quarantined counter space and shop floor display space to make the most of the opportunity.

All indications are that this will be the launch of 2011.

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magazines

More coverage on the EFTPOS challenge facing newsagents

ABC Online has more coverage on the EFTPOS challenge facing newsagents and other independent small businesses following the recent decision by EPAL.  This is an interview with Jost Stollman of Tyro – well over 500 newsagents use Tyro for EFTPOS processing.

I encourage newsagents to write to their local members of parliament.  The more politicians who feed this grass roots concern back through their channels the greater the likelihood of the issue getting to people who can make a difference.

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EFTPOS fees

No end in sight for Bieber fever

bieberdisplay.JPGSoon after our team created this display promoting the new Justin Bieber one-shot (out Monday) from Pacific Magazines at the counter it started selling.  Seriously.  If only all displays worked like this.

Given that this title is a newsagent only one-shot with limited promotion, it needs to be in a high traffic location.  Hence our positioning at the counter – between two busy sales points and at a height which is friendly to the Justin Bieber fan base.

We are confident of selling out within a month based on sales already.

I was talking to a newsagent yesterday who was complaining about this title and “all the fuss about Bieber”.  We are not our customers.  Whether we like this kid or not, if he sells product, especially to a demographic which is not strong for us, we should get behind the product.

Note the placement of the Justin Bieber photo packs in the middle of the display – these continue to sell well.

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magazines

Promoting In-Style magazine

mag-instyle.JPGWe have been promoting the latest issue of In-Style magazine with this aisle end display.  It’s a nice and clean display without much visual competition around … the display pops and should result in a good uplift in sales for the title.  A couple of publishers have asked me about cover run-one.  the photo shows a good example of simple use of cover run-ons.  We use them in displays like this as well as above product in the usual location for the magazine display.  They are an effective way of drawing attention to a feature title like In-Style.

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magazines

How to handle a complaint with a newsagency franchise group

Newsagents unhappy with their franchise (marketing) group could turn to the ACCC for relief.  The ACCC has oversight of the Franchising Code of Conduct. The Franchising Code of Conduct is a mandatory industry code of conduct that has the force of law under the Competition and Consumer Act 2010 (the Act).  It is through using the provisions of this code that newsagents could have a dispute with their franchisor dealt with is structured way.

Sometimes, newsagents locked in a long term contract feel that they have nowhere to go to seek relief.  It could be than a complaint to the appropriate office of the ACCC shines enough light on an issue for it to be resolved satisfactorily.

I am aware of newsagents who have used this process with success, achieving a departure from a franchise agreement which had been previously denied them.

Depending on your specific circumstances a long term franchise agreement does not necessarily have to be a long term franchise agreement.

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newsagency marketing

Drowing in Poolside mags from Universal Magazines

universal-pool1.JPGCheck out the range of bagged poolside titles from Universal Magazines on the shelves of one newsagency in Melbourne at the moment.

Is this oversupply?  I think so.  Especially given that there are other pool titles out with fresh and more easily browsed (i.e. not bagged) content – who needs this recycled product which can only be re-sent because it did not sell the first time around..

Is this fair supply?  No, not having what looks like three different packs on the shelf on the sale time.  Not given that space is in high demand in newsagencies.  Not given the terms under which newsagents are supplied with magazines.

What would Universal say?  They would say that I am unfairly targeting them, that they supply titles which sell and that shoppers like the value offered in bagged titles.  They would also say that newsagents should look at other publishers who send out bagged titles to take up newsagent space.

I encourage newsagents to check their shelves to see if they have these titles and consider whether the titles justify their space.  If I was this newsagent and sales were not justifying the space I’d be early returning covers.

Universal Magazines and other publishers need to know that they are judged by newsagents on their actions and not how they compare to others.  In this instance, the Universal Magazines supply model which they talk up appears to have not worked.

Representatives from Universal and newsagents are welcome, as always here, to comment.

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magazine distribution

No end to Royal Wedding interest

weddingposter.JPGWe received more stock of the Woman’s Day Royal Wedding one shot and our team created this poster to sit atop of the display unit to draw attention to the product offer.

The poster is terrific – simple and very effective.  This and our tactical placement of the display unit out the front of the newsagency facing into the mall is a good reason for the sales success we are continuing to enjoy with this title.

Based on pre royal wedding interest I expect the weeklies and monthlies with royal wedding coverage to sell well.  Hopefully we get plenty of good covers to make the most of the opportunity.

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magazines

Promoting Good Food magazine

mag-goodfood.JPGWe are promoting the latest issue of Good Food magazine with this aisle end display.

I love that this issue can be browsed – good to see … it does not happen enough with Good Food.  Food titles are browsed, shoppers love this.

We are also promoting the title in with our weeklies for the first week of the on sale to make the most of all the most of all the promotion activity.

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magazines