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Calendars

Preselling the Official Michael Jackson Calendar

michael_jackson_calendar.jpgWe are pre-selling the Official Michael Jackson 2010 calendar.  Customers are reacting well, we have good orders in ttwo of our stores.  There is no resistance to the requirement for a chunky deposit or the terms associated with the offer.

This is a great way to lock-in business in advance of a hot product being launched, before others flood the market with Michael Jackson themed calendars.  Right now, this offer is exclusive to us.

The idea of the pre-sell is a newsXpress initiative.

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Calendars

Playing with puzzles

fhn_puzzles.JPGWe are playing in the jigsaw puzzle space at Forest Hill and early sales are very good. Our team has selected puzzles based on successes from our calendar range.  The Planet Zoo range looks great!  Each features an appealing image.  There is a social responsibility connection – a portion of each sale is donated to a wildlife organisation by the folks at Planet Zoo.

We find calendar sales are an excellent resource when looking at other parts of the business for opportunities. They demonstrate popular interests – as do magazines.

While we’re not about retire on the sales of puzzles, they are extending the focus of our business and helping achieve gift purchases from our customers which would otherwise have been satisfied elsewhere.

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Calendars

Calendars ticking along

frank_cal.JPGCalendars are continuing to sell at the rate of between ten and twenty a day at our newsagencies.  We are fortunate to be achieving a margin of 60% on the discounted price.  Watching customer behaviour, they are now more add-ons to existing purchases rather than destination purchases.  There are some categories in our businesses which we need to quit immediately the season is over and others which will work well beyond what we would think is a reasonable cut-off date.

We have found that by promoting at a specific price point – $5 – we attract more browsers.

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Calendars

Calendars and dog lovers

fhn_dog_cal.JPGI served a customer yesterday who had been told by a friend to come to our newsagency for a calendar for her favourite dog breed. This customer drove past two major shopping centres in 46 degree heat to get the calendar – for her dog. She bought another calendar, a magazine and a card. When talking with her about why she would go out in such extreme heat she said she’d do anything for her dog.  She told me she would be back.

We built our calendar range around special interests. This started three years ago and we have got better with time. Word of mouth driving new customers to us like I witnessed yesterday is what we have chased.

The 500 or so 2009 calendars we have on sale now for $5.00 are delivering a healthy margin, more than double what we achieve for magazines. We will sell out and end the calendar season well up – in January we were 13% up on January 2008.

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Calendars

Calendar recommendation

bartel_cal.JPGFor newsagents wanting to break into calendars, I can recomment Bartel.  Their range of Australian calendars sells well in each of my newsagencies.  We go out early (September) and achieve good sales from people sending calendars as gifts overseas.  I especailly like that they offer regional calendars – Mornington Peninsular for example for our Frankston newsagency.  Newsagents can deal direct with bartel.  They offer end of season deals to their regular customers.

In my own experience, the Bartel range has performed better than Steve Parish.

The time to plan for calendars is February and no later than March.

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Calendars

Ferrets and point of difference

ferrets.JPGMost of the calendars we sell in our newsXpress Forest Hill store we selected by title, carefully based on past year sales data and with attention to our demographic.  Like special interest magazines, our calendars speak to range.  They pull customers in looking for special interest titles – because they have seen them before in our shop or because of word of mouth. 

For most of our pre Christmas customers, calendar price is not an issue.

Several times, customers have told us that we have saved them buying a certain calendar title online – they love that they were able to buy it over the counter.  These are customers who will be back next year.  Some will also be back for the Boxing Day sale for a second and third calendar – we have stocked up for this.

The Ferrets calendar is a good example of demonstrating a point of difference.  Ask a newsagent if they would carry it and most would say no.  However, once you have had some success with calendars and you want to expand on that you will soon find yourself carrying and selling the Ferrets calendar.

Like overseas crossword titles, calendars from magazine companies are, for the most part, a waste of time and space.  You can build the kind of business you want.

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Calendars

2009 calendar sales strong

fhn_cal.JPGOur calendar sales in November were up 6% on November 2007 at our Forest Hill store.  December to last night is nicely ahead as well.  With no discounting I would note. This is a solid result given the excellent numbers for last year and that we had a Card and Diary outpost out the front of our shop last year pulling customers in.

Magazines generated 7.8 times the revenue of calendars and only 3.2 times the GP.  Once I account for space and labour, calendars are more profitable and the best weeks are ahead of us.

I’d note, however, that the comparison with magazines is somewhat unfair in that many calendars are sold to customers who shop with us because of our range of magazines.  This is the challenge with the department.  The key is to build better GP departments around the magazine traffic.  This is where calendars fit well.

It surprises me that many newsagents still only sell calendars from magazine distributors.  Why you would do this for less than half the margin is beyond me.

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Calendars

Marketing the calendar range

nx_cal.JPGnewsXpress has provided its members with copies of this double sided A2 poster to promote the 2009 Calendar range. Click on the thumbnail for a larger image. The idea behind the poster is to promote range. With most newsagents only selling magazine distributor and card company calendars, the newsXpress approach allows us to promote a key point of difference in the calendar category. With a margin of 60% and more, such promotion is valuable.

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Calendars

Elvis for Christmas

elvischristmas.JPGThe latest part for the Elvis partwork is appropriately Christmas themed. We are using this as an opportunity to pitch it as a gift idea for the season. The calendar and CD are a good-value gift priced at $19.95. It is good to find Christmas gift ideas in regular products we carry to extend the Christmas gift range we have brought in.

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Calendars

Great Christmas gift upsell

gcounter.JPGThese small keychain calendars are selling well at the counter at our newsagencies. I am sure they would not sell as well if we placed them elsewhere – away from the counter. They are a perfect impulse item. I have noticed they are popular with older women who are pleased to have found something for a granddaughter. It is pleasing to see a $1.10 sale turn into a $10+ plus sale thanks to the placement of these mini calendars at the counter.

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Calendars

The Broons calendar 2009

broons.JPGIt surprises me sometimes the products which we sell in Australian newsagencies. Take the 2009 calendar for The Broons, a soap-opera comic strip developed around seventy years ago in Scotland. This is a product for a highly specialised market. Given our sales of Scottish magazines we are a good candidate for receiving stock of The Broons calendar – now that I know the back story to the characters. We try and take time to research products we don;t understand so we can answer customer questions.

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Calendars

Reusing retail fixtures

reuse_fixture.JPGOur team at Forest Hill has reused an old display unit for our range of small magnetic day-to-a-page calendars. This small unit fits nicely right at the front corner of the counter next to the ACP magazine display stand. All too often specially built display units are trashed once the purpose for which they were provided has passed. Reuse such as that done by our Forest Hill team is good for the environment. The bonus is that it solved a challenging display problem.

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Calendars

Promoting 4 Ingredients

4ing_cal.JPGWe promoted the 4 Ingredients calendar as a Calendar of the Week. While the margin is not what we would prefer, this is an exclusive line for newsagents. I know that a national retailer sought to purchase 20,000 units and the publishers declined, preferring to support newsagents instead.  Hence our decision to feature the calendar.

4 Ingredients is a brand consumers trust.  Their cookbook is a hit and the TV show is keeping them top of mind.

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Calendars

Saying no to dud calendars

family_organiser_dud.JPGWe are early returning this and other calendars to Network Services having previously advised them that we do not wish to receive non magazine title calendars through them. We have a similar themed organiser calendar from another supplier delivering more than double the margin of the network supplied product. There is no point in offering a poor margin product when you have a more viable alternative.

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Calendars

Calendar strategy delivers results

frank_cal.JPGOur calendar sales in September were up 72% at Forest Hill and 37% at Frankston.

At Forest Hill the increase is driven by having a solid range on display early in the calendar season.

At Frankston it is thanks to a new point of difference – previously this store focused on magazine distributor calendars. We are focused on a more unique range of titles. We have given over a column at the front of the store to promote our calendar range as well as to feature a Calendar of the Week.

At each store we are not discounting and do not plan to discount until after Christmas. We leasrnt our lesson three years ago after playing the discounting game for two years and losing. Now, we focus on range and service – two areas in which the discount calendar outlets.

Too often, newsagents think that discounting is the way to win a sale or grow a business is to discount. Discounting is admitting defeat if you have gone to it ahead of other smarter options such as a point of difference in range and or service. While there is a time for discounting with calendars, as I have learnt from my own mistakes it is not now – not even with others discounting nearby. If you have the right range you don not need to discount.

I’d note that the calendar strategy we follow is that developed by newsXpress more than five years ago, long before I joined the group. Indeed, this is one reason I was attracted to newsXpress – to replace magazine distributor calendars with better margin more unique product.

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Calendars

Making the paper plane

paperplane.JPGThis paper plane set is one of the boxed calendars we have on offer for 2009. I like it because it loosely connects with newsagents and what we sell. Calendars like these separate us from other calendar retailers. The more we present ourselves as specialists the better.

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Calendars

Revising the counter offer

cal_candy.JPGWe have revised our counter offer at Forest Hill – introducing small magnetic day to a page calendars. This display has been in place for a week and is achieving good results. The high price and good margin make each calendar worth more than a candy bar. We have been careful in selecting the calendar titles to promote in this impulse position.

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Calendars

Promoting desk calendars

fhn_desk_cal.JPGWe have a table of small desk calendars on display between our diaries and calendars. This is a considerably bigger range of desk calendars than we had last year. It is different to what you would expect to see in a newsagency – because we have sourced this from non newsagent suppliers. It is part of our strategy of broadening our range of calendars and related lines, part of the newsXpress calendar offer. Calendars have grown for us over the last three years and we are chasing more growth this year.

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Calendars

Embracing the column with calendars

col_calend.JPGOur team at our Frankston newsagency refuses to let the big old column at the front of the shop get in the way of promoting product.

They have just wrapped the column in black as a background for a four-sided calendar display.  This is in addition to product filled calendar stands at the front of the shop.

The side showing in the photo shows mainly TV show themed calendars.  This will change as the calendar season moved toward Christmas.  I especially like that they have created a display which facilitates such easy change at the front of the shop.

Other sides use perspex shelves to display desk and other smaller calendars.

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Calendars

2009 desk calendars selling well

blockdiaries.JPGWe placed a stack of 2009 desk calendar blocks at the counter, next to our good selling Angel Flames candles, several weeks ago.  Sales have been excellent.  Our price is $2.00.  While others will be cheaper, at this price point we are not finding any resistance – people are happy to have got one while they are in-store.  We punch above our weight in sales of these desk calendars because we go out early and locate the product at the counter.

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Calendars

Early with calendars

calendars_start.JPGYou know the year is rushing to the finish line when calendars arrive in-store. Being early with a good range of calendars is important for the overseas gift purchases. This why the early range out now includes plenty of Australiana product. Year on year, calendars are growing more than 10% is newsagencies which drive the category. Going early is key.

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Calendars

Ask for clarity on ANF commission

Newsagents are getting inundated by suppliers to sign up for mobile recharge and eftpos arrangements including two faxes from my own business (but no calls from us).  Given my earlier post this morning about evidence suggesting the ANF is getting 40% of available commission and the newsagent getting 60%, I suggest to newsagents that they ask any caller: How much commission is paid to the ANF?  Tell them you will not consider their offer further until they put their response in writing to you.

Newsagents have a right to have the facts so they can make an informed decision.  I am certain that faced with one offer paying a newsagent 6% commission and the ANF, say, 4% commission on mobile phone recharge or another offer paying the newsagent 6% and no other party any commission, the newsagent is likely to go for the latter.

The ANF is not acting as an industry association in this matter.  It is acting as a commercial party.  This is demonstrated in every announcement made about eftpos arrangements.

While I negotiated the deal with St.George, I advise newsagents who ask me today what they should do since all they have is the Bill Express terminal for eftpos to install the unit shipped from the ANZ.  This provides time for the dust to settle and clarity to be achieved on any currently secret commission being paid to the ANF.

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Bill Express

Calendars continue to sell

It’s the middle of January and calendars are continuing to sell well. We bought 1,000 additional calendars ten days ago at a good discount just for this purpose – the January sales. The decision is paying off with sales of $200+ a day some days.  We are still only discounting 50%.

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Calendars

It’s all in the sign

half_price_calendars.JPGWe have been offering 50% off calendars since Boxing Day at or Frankston location but it is only when we took stock from two of our spinners, put it in the box you see in the photo and labeled it Half Price that our customers really started to take notice.

While it’s not pretty, it’s working. The spinners are okay for the leisurely browsers but this side of the New year it’s about the bargain and that’s what the box gets across.

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Calendars

Success with calendars

Two years ago I lamented here about a disastrous year with calendars. Last year was good thanks to joining calendarXpress. This year is good too – again thanks to calendarXpress. The calendarXpress model is driving better range decisions and better margin and turning calendars into a valuable seasonal promotion – considerably more valuable in my Forest Hill store than back to school. This success is, in part, a commentary on the demographic and, in part, a commentary on the different labour and capital investments in calendars compared to stationery.

While I have been a shareholder in newsXpress since 2005 it was only last year that I embraced the calendarXpress side of the business having had a bad calendar experience a year or two earlier. What I am finding now is that the mistakes I made are eliminated and I am archiving a better margin than before. Plus new customers are being attracted to the business. This is because of the 140 or so calendarXpress locations – not all of which are newsXpress locations – and the benefits of negotiating as a group.

I don’t mean this to sound like an ad for calendarXpress because it’s not. People reading here over the last three years will know something of the journey I have been on with calendars at Forest Hill. Having stumbled taking a typical newsagent approach it is good to see the discipline of the calendarXpress approach work for the second year in a row.

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Calendars