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

Author: Mark

Queensland newsagents face 100% increase in insurance premiums

Queensland newsagents have been shocked by the insurance premiums being charged for the next year.  Many have premiums which expire next month, organised through a QNF endorsed insurance broker.

If what I am told is right, a change of ownership of the broker has played a role in newsagents being hit with a 100% rate rise.  I expect that newsagents will flee the broker if this exorbitant rate rise sticks.

I don’t see any justification for a doubling of insurance fees, including the floods at the start of this year.  Insurance companies build reserves for such events so that they do not double rates the year after such an event.

I’d be interested in hearing what newsagents are being charge for insurance – I am sure others would too.

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Ethics

Good start to 2011 calendar sales

caln-bartel.JPGOur Bartel 2012 range is selling well. This is the first start of our broader calendar offer which will hit the shop floor over the next few weeks.

Getting in early with good margin calendars is important in establishing your position in the category.

We will not discount calendars until January 1, 2012. I can’t think of any reason for newsagents to discount calendars before then.

This year many newsagents have a better opportunity with calendars following the collapse of REDGroup retail and their calendar Club operations. While I understand that Calendar Club will emerge, my understanding is that it will not be in as many location as in the past.

The collapse of Cardeaux will also help calendar sales in newsagencies, especially at this early stage as they were notorious for discounting from the start of the season.

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Calendars

Australian Travellersupport drives results

austav.jpgI’ve been a strong supporter of Australian Traveller magazine here over the last year. This has been vindicated with the latest audit result. Sales for the magazine were up 17.93%. This is a terrific result. It demonstrates to newsagents that their support for the title can drive sales … an increase in sales means we get to bank more margin dollars.

I am seeing growth in sales for Australian Traveller by placing the title with women’s magazines and not in the travel section.  This placement with weeklies is what the publisher recommends.

The latest audit result should be enough to get more newsagents behind this title.

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magazines

New Hallmark Recordable Storybook ad

Check out the latest (adorable) advertisement for the Hallmark Recordable Storybook range. This ad features new titles just added to this popular interactive range of gift books.

It is so much easier selling products which are promoted on TV, especially products backed by an international brand such as Hallmark.

These Hallmark Recordable Storybooks have been a hit, opening up a whole new marketplace for us. Customers love them.

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Greeting Cards

Supporting Maxim magazine

mags-maxim.JPGWe are supporting the second local issue of Maxim magazine with this half waterfall display in-location. With the first issue selling out for us we are keen to grow that initial interest even further. The market to which Maxim appeals is important to us, it’s why I want to be sure we cultivate it – with this type of support in our magazine department.

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magazines

Promoting Take 5 and Symply Too Good

t5-sym.JPGWe have been supporting the free Weight Loss journal from Annette Sym which is on the cover of Take 5 with a prime location placement and to support the sale of her cookbooks.  Once this feature ends tomorrow we will be promoting the Symply Too Good books with our weeklies as well as with food titles.

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magazines

ACCC agrees to collective bargaining for newsagents with NSW Lotteries

The ACCC today issued a draft decision proposing to allow NANA, the Newsagents Association of NSW and ACT, to collectively bargain with NSW Lotteries on behalf of member newsagents for the next five years.

While this is a good move for NANA and NANA / ANF members, the biggest challenge lottery agents face is the migration of shoppers online.  The best way we can counter this is through the experience we offer in our shops every day, with every transaction.

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Lotteries

Newsagent injures arm delivering overweight newspapers

A newsagent has injured his left arm delivering heavy Sunday Telegraph newspapers. With time off work, physiotherapy and other expenses associated with this workplace injury, the cost will be considerable.

With the Sunday Telegraph and other newspapers often weighing more than that recommended in the ANF commissioned Nery report of 2006, there is a question for News Limited to answer about the occupational health and safety challenges they present with their overweight newspapers.

Newsagents can’t split the Sunday Telegraph into two pieces. News is not paying for two deliveries anyway.

Newsagents are an agent for News, operating as a contractor under the control of News. News sets the price, terms, conditions and controls the weight of the product.

While I am no lawyer, I’d expect News to have some, if not full, responsibility for the OH&S situation where its products are concerned.

I’d be interested to hear if other newsagents or newsagency employees have sustained injuries delivering heavy newspapers.

Click here to read what I have written over the years about the Nery report and overweight newspapers.

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Newsagency challenges

How can newsagents cut costs?

The media section of The Australian this morning carries a report about a drive within News Limited to cut costs by 5%.  While this is a story abour News Limited and its costs, there are two levels on which newsagents could consider this story:

  1. Newspaper distribution is a considerable cost for the company.  How much will there be an expectation that they can find cost savings in the distribution model?  Based on their research of the distribution model I’d expect them to be targeting significant savings through the forthcoming distribution changes.
  2. The second issue is one about our own costs.  When was the last time you reviewed your operating costs?  When was the last time you acted on reducing your costs? For many newsagents the answers would be never and never. From insurance to rent to labour we need to look at our costs and operate as lean as practical.  Don’t make excuses.

Imagine the impact on your bottom line if you were successful at cutting costs by 5%.  Every cent saved would hit your bottom line and benefit you this year and when you come to sell.

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Newsagency challenges

South Australian newsagents upbeat despite News Limited

South Australian newsagents I spoke with at the Ancol Trade Expo in Adelaide yesterday were upbeat about business despite the uncertainty surrounding newspaper distribution caused y the News Limited ‘study’ into the future model of newspaper distribution.

Many newsagents now realise that they need not wait for news to decide since they can make decisions themselves about the future direction of their own businesses. It was good to hear of the proactive plans of some newsagents. It was also good to hear people ‘owning’ their future by embracing change before change hunts them down.

My only criticism of the day is that I would have liked to see magazine publishers and distributors represented.

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Newsagency challenges

Feast achieves 50% sell through

feastmagazine.JPGWe have passed sales of 50% of our initial supply of the launch issue of Feast magazine and there is no indication that sales will end. I think that sales of this magazine will occur right through the on-sale – that is certainly what we are seeing with the launch issue. This is another reason for not early returning, especially with the launch issue.

On the numbers we have done, Feast is in our top food titles this month – well done Pacific Magazines and SBS..

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magazines

The Block magazine sells well

theblockmag.JPGWe sold 35 copies of The Block in one of my newsagencies. This is three times our initial supply. I’m very happy with the result. Most of the sales were achieved at impulse purchase locations: with newspapers and with women’s weekly magazines.

While sales have slowed now that the TV show has been off the air for a week, this one-shot from ACP Magazines has enjoyed a terrific run – well done to everyone involved.

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magazines

The Important Community Connection – a Newsagency Marketing & Management Tip

When speaking at conferences and workshops I am often asked by newsagents to help them address flat sales. The discussion often come back to what the business stands for. When I ask what do we stand for? A common answer from independent retailers is community connection, being local. This is often said by newsagents with a less than complete community connection strategy.

Being connected with the local community is a good unique selling proposition when most of what is sold is available from other businesses, usually bigger businesses.

By trading off the local connection, independent retailers connect with others who are community-minded.

In just about any retail business, more could be done to connect with the community. Here are some questions you could ask yourself to test the community connection of your independent retail business:

  1. What local charities does the business support?
  2. What local schools does the business support?
  3. What local organisations is the business connected with?
  4. What local events does the business actively participate in?
  5. Have you compared the savings of shopping locally at your business compared to further away? Do you communicate this?
  6. Do you buy from local businesses where possible? Do you promote this?
  7. Do you promote your business with other local businesses?
  8. Does a representative of the business attend events and charities supported by the business to make awards?
  9. Do you hold events in the business for local groups – art shows, competition entries and the like?
  10. Do you participate in local government business forums?
  11. Are your employees encouraged to share in your community involvement?
  12. Are you part of the local traders association?
  13. Are local organisations able to publicise events in the window or using other resources of the business?
  14. If your newsagency closed, would the community care?

This last question is the real question: If your neewsagency closed, would the community care? Would what you perceive as your value be lost and noticed? If the answer is no then your community connection is not as good as it could be.

Connecting your business to the local community is not something you can fake. It must be genuine from the owner of the business right through. You need to pursue as many touch points as possible for the sake of the business and to demonstrate and drive value for the community.

There are initiatives independent retailers can take to help the local community and build a mutually beneficial community connection. Here are 20 ideas for your consideration:

  1. Establish a what’s on noticeboard in your window or on a wall for promoting local events.
  2. Sponsor a locally focused newsletter which covers issues of local interest. Create this as a forum for local groups to use.
  3. Link to local clubs and groups on your business website.
  4. Talk to your local council – they are bound to have suggestions on ways you can connect with the local community.
  5. Create or support a local traders website.
  6. Collect change from customers for local charities. Track what you collect and keep your customers aware of the value reinvested in the community.
  7. Talk to local schools, do they have activities which you can support and for which they promote your business?
  8. Sponsor an annual encouragement award at a local school and present the award yourself.
  9. Talk to local health and nursing facilities. Do they have needs which you can meet with excess stock?
  10. Create a newcomer pack with other businesses and deliver this to families new to the area.
  11. Support at least one local sports club. This is best done through either uniform sponsorship or sponsoring a regular award.
  12. If appropriate to your product mix, offer products from local businesses and individuals.
  13. Offer to sit on local boards and committees for groups known for doing good work in the community.
  14. Offer space in-store for community groups to promote their work.
  15. Office space in front of your store for community groups to run a sales stall.
  16. Offer your front window a couple of time a year for a community group to promote their work.
  17. Support local causes – offer to have petitions available for customers to sign in your store.
  18. Write to the local newspaper about local issues – let your passion be seen.
  19. Run local events which connect with the local community. The nature of the event will depend on your business niche and skills of locals nearby. For example, you could sponsor a local art show.
  20. Price compare popular items in your shop with bigger businesses further away. Promote your savings for the local community as a point of difference.

Newsagents with consistently strong community connections can rely on this to deliver better business. The return for the community is greater support from the business for community activities.

I suspect there is a big difference between the community connection of a retail business in the city compared to a regional area. Regional businesses tend to be more community focused as they pull their customers from a smaller pool.

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marketing tip

Excellent Visual Merchandising For New Idea Daffodil Day Fund Raising

daffodil-watergardens.JPGClick on the image to see the excellent display created at one of my newsagencies by a very creative team member.  It is an excellent promotion off the current issue of New Idea – the sale of which raises ten cents for the Cancer Council through their Daffodil Day campaign.  The display was conceived and created in store – I had nothing to do with it so I’m not claiming any kudos.

What I love about the display is the way it connects the magazine with the fund raising drive and that it educates shoppers about the work of the Cancer Council.  The display shows a care for the broader mission – beyond pure sale – and that it does this in a creative and non-corporate way.

I am a big fan of local and personal displays over the billboard displays which have a sameness.

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magazines

Father’s Day Book Sale Drives Traffic

fathers-books.JPGWe are continuing to enjoy excellent sales from our Father’s Day book sale.

While we use dad themed books to drive traffic,we have an excellent range catering for all sorts of situations – for dad and beyond.

Books make a perfect basket builder.  They are easily purchased on impulse.  A good range gets you known as a destination store for books as gifts.

With women being our biggest shopping group, we have found that appealing to them is key to any promotion – hence the selection of books we have connecting with Father’s Day.

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Book retailing

Newsagents told change is coming and you’re on your own by publishers

While I was not at the forum at the ANF Conference in Melbourne this week which featured John Hartigan CEO of News and Greg Hywood CEO of Fairfax, I have heard from several people who were there.

The key message on the future of print and an impact on distribution appears to have been: we will do what is appropriate for our publishing businesses in dealing with change in print media.  Feel that rationalisation of distribution is needed.  That there will be no compensation for newsagents.  Newsagents: you are on your own inn terms of your own businesses.

Some of us have been saying this for quite a while. We need to act in our best interests.  What is galling is the restrictions applied by some News Limited outposts on newsagents who do try and act in their interests.

John Hartigan in his opening comments talked about recently being in the US and seeing Apple TV and noted that it is not in Australia.  Um, it’s been here for three years.

Kudos to Hartigan and Hywood for fronting the conference.

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Newsagency benchmark

Leveraging Kim Kardashian’s wedding

kardashians.jpgI don’t understand the apparent fascination with the Kardashian family – they are famous for being, well, famous.  That rant aside, Who magazine (out yesterday) has an excellent photo spread of Kim Kardashian’s wedding.  It a certain good seller given the timing of the publication and the photos.  What is especially interesting is the coverage online for this issue of Who. E! Online has a story.  The Kardashians themselves are referencing it on their Facebook page, mentioning Who specifically – this is certain to drive fans looking for the magazine.

The Kardashian coverage is an excellent opportunity to drive magazine sales this weekend.  We can prove our relevance by getting behind this.

The same story in People in the US has been a huge hit.  This further underscores the opportunity for newsagents.

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magazines

Supporting Daffodil Day

daffodilday.JPGWe supported Daffodil Day yesterday.    The flowers, magazine, fund raising items and small poster (provided by Pacific Magazines) combined to give context to the day.  I am thrilled that my team got behind this. This  was not about revenue as much as it was about raising awareness for the Cancer Council.

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Magazine subscriptions

How would like a newsagency to open next to you?

districts.JPGI have been in India for much of this week as part of the retail study tour I’m undertaking with a colleague from my Tower Systems newsagency software company. We have been broadening our experience and knowledge of retail beyond what we already knew from Australia, New Zealand, the Pacific Rim region, the US and Europe.

This week in India we have seen very different retail situations from the structured to the unstructured. Just as we have seen over the last three weeks in the Philippines and Vietnam, the retail section is highly competitive – way more so than what we are used to in Australia.

There are kind of districts where similar businesses clump together. In Vietnam, in Ho Chin Minh City, we were in the photocopy services district (seriously) and saw at least twenty photocopying businesses right next to each other.

In India this week we saw something similar. For example, we passed through what could only be described as the ladder district – at least eight or ten ladder shops in a row. Yes, ladders.

I took the photo on the road from NOIDA to Delhi to illustrate the competitive situation evident not only in India but also in Vietnam and the Philippines – competitive photocopy businesses located next to each other. There were more than the two photocopy businesses in the photo.

Seeing this up close competitive situation has left me wondering what it would be like with a newsagency next to another newsagency. Or a string of twenty newsagencies next to each other. Imagine the challenge of differentiation. Imagine the opportunity of this.

I think this is an interesting prism through which to view and run our businesses …. How we would operate if there was a competitor (or more) next door.

Yes, I know that we have competitors in various categories: magazines, stationery, greeting cards. That is not the same as a business just like yours located right next to you.

How would you act? What would you do to differentiate? How would you compete?

I am certain that if we think about such an intense competitive situation we will soon discover ways we can differentiate our businesses today. The Indian photocopy service businesses in the photo have to. Beyond price – as price is the easy way to differentiate. No, it really comes down to customer service, the customer experience.

Our need to differentiate around customer service is one of the key takeaways from by recent trips overseas.

We have to run our businesses and compete as if there is a business exactly like ours next door to us.

Now is not the time for us to be average.

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Newsagency challenges

Promoting Burke’s Backyard and free seeds

mags-burkessep11.jpgWe are promoting the latest issue of Burke’s Backyard at the entrance to our garden / home / lifestyle area with this terrific in-location display. The free seed offer issues of Burke’s Backyard always go off.

We plan to run the title with our newspapers on the weekend while maintaining this in-location display.  In the first weekend of the on-sale especially it does well – excellent impulse purchase business.

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magazines

Promoting kids magazines

magskzonetotal.jpgWe are promoting K-Zone and Total Girl with an energetic aisle end display in the kids / parents area of our store.  While all kids titles are challenged in terms of sales, this does not stop us from promoting them.  We remind customers, especially grandparents, that they make a good gift.

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magazines

Covering the newspaper masthead and headline

papercoverup.JPGI wonder how the publisher of the Business Standard of India feels when their masthead and some content, including the lead headline, is covered up by an ad for HR services.  On a Jet Airways flight out of Delhi, all the newspapers I saw yesterday had their masthead covered in this way.  This is far more intense than the post it type ads I complain about on Australian newspapers.

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newspaper masthead desecration

Darrell Lea Changes Dilute the Value of the Brand

Darrell Lea has been all over the place over the last couple of years. What was once a controlled and respected brand is being found in more and more retail outlets. This makes the Darrell Lea brand less interesting to retailers like newsagents. It’s no longer the special and well-managed brand.

While Darrell Lea could change again and fix their model, the current situation opens our channel up to an opportunity for another chocolate and candy brand which understands the importance of good brand management to partner with newsagents and through this to leverage our excellent traffic.

While there is always Cadbury as the most popular chocolate brand in Australia, I think that there is an opportunity for a non-supermarket brand for a point of difference around premium chocolate. Some brands have had a crack but they have not understood the newsagency channel.

I’d like to be able to sell quality chocolates with a good margin all year round … they make and ideal gift line.

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confectionary
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