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magazine distribution

An example of how Network Services denies newsagents the ability to manage magazine supply

Publishers wondering why newsagents early return need to look at this example. The data on the Network Services website shows the sales volume. The newsagent is requesting supply closer to actual sales, to limit their financial exposure. The Network website rules forbid the newsagent from doing this. This is exactly the type of evidence that ought to be submitted to the ACCC.

Screen Shot 2015-11-30 at 10.17.39 am

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Ethics

Harpers Bazaar barcode issue

Network Services has advised of a barcode issue with Harpers Bazaar that needs attention at the store level:

Network recently distributed an edition of Harper’s Bazaar where the barcode that was provided in the XIT data did not match what was on the magazine.

An email communication was sent out to newsagents advising of this error and to update the barcode in their point of sale system to the barcode on the magazine cover for that product and issue code.

–       Incorrect Barcode 9313006005407 12

–       Barcode on magazine 9313006007739 12

This edition’s issue code is 1512, however we’re seeing a large number scans coming through for 1412, last year’s DEC edition. It seems that these agents have not updated the barcode “9313006007739 12” to apply to issue 1512.

If the magazine continues to scan as 1412, these agents will be scanning sales at the 1412 price which is different to the 1512. It also means that when the title is recalled it will be scanned out as 1412, and so reject in the return claim.

In the Tower newsagency software resolving this is easy. Go to Utilities, scroll to Change/Merge Barcode. Enter the old barcode in the top box (without the space). Enter the new barcode in the second box (without the space). Click modify. You;re done. Other software companies are welcome to provide advice here for newsagents.

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magazine distribution

A Christmas gift from Bauer Media to newsagents: oversupply

AWWI heard from a newsagent this morning that they have received 285 copies of the Christmas issue of the Australian Women’s Weekly to go on sale tomorrow. Last year they sold 145.

Based on trend data from 2015, a supply of 185 would have been reasonable. If there is something truly amazing and unexpected about this issue then maybe 200 copies would have been okay.

285 copies is ridiculous, a waste of paper, time, space and money.

Some magazine allocations genius has decided to send this newsagency a 36.6% increase in supply. There is no explanation, no reason for the newsagent to think it is warranted.

I know if I speak with the folks at Bauer they will have an explanation, they always do. However, this type of oversupply continues and newsagents carry the cost. It is not good enough.

Bauer is part of the MPA and the MPA is making a big deal about a marketing campaign they are running next year to promote newsagencies. I think that investment is a waste unless they fix the oversupply issue, unless they respect newsagents through their actions.

I am constantly asked why newsagents are cutting magazine space. Here in this blog post is an explanation of the key reason.

Independent publishers need to pressure all publishers to stop this oversupply nonsense.

Here is exactly what the newsagent wrote to me. I am sharing it here to show the frustration they are experiencing:

Just arrived tomorrows mags as we received them today, we received 285 AWW ! Now I know it is the xmas issue but last xmas we got 209 and returned 64 copies. This would have to be the most blatant oversupply I have possibly seen. Plus there would have been approx 6 different Adult colouring mags as well. I might make a call to AWW today and make a complaint, not only is it wasting their money ( we top all mags ) its wasting mine as well

Is this unconscionable conduct?

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Ethics

If NewsLifeMedia wants to help newsagents…

IMG_1973NewsLifeMedia is part of the MPA and as such they are participating in an initiative next year to promote newsagencies because they want to help our channel grow. Well, here is one way they can help us grow:

Do not send stock we do not need.

Take their new adult colouring titles. They entered the market too late, months too late. The product is not appealing to those buying multiple copies. Also, smart newsagents are sourcing their own product from which they make 50% and more rather than the 25% we get from magazines.

So, if NewsLifeMedia wants to help newsagents, they ought to behave in a way that is more commercial respectful of us.

To any magazine publisher thinking they can enter this adult colouring space and ship product off to newsagents: don’t! We are saturated with magazine titles and our own product we have sourced from book publishers for better margin. Do not abuse the magazine distribution model and newsagents with stock we do not need.

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magazine distribution

Why are newsagents being asked to promote Myer?

emporLast week newsagents were asked by News Corp. to hand out Woolworths bags, this week some have been asked to hand out a Myer Christmas catalogue. The Myer catalogue promotion is through the Bauer Connections program. I am surprised as this sounds like a dumb move and they know the channel well enough to know it is a dumb move no matter how it is pitched.

Did those who pushed this onto newsagents check the contents of the catalogue? Did they think about whether newsagents would want to promote a competitor? Did they put themselves in the shoes of newsagents? Did they ask any newsagents?

Myer is pitching cards, wrap and gifts in this catalogue – all items newsagents sell. Why would we promote this competitor? Of course we should not as Myer would not promote us. We have to fight for every dollar we win against them in a range of categories.

One newsagent I heard from received the catalogues and no explanation. If true, this is a botched campaign.

I suspect many Myer catalogues will end up in recycle bins.

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Leadership

I urge magazine publishers to make newsagencies magazine specialists once more – ditch supermarkets

I response to the article in mUmBRELLA last week reporting comments about newsagents by two publishers, I offered to write in support of newsagents and with a suggestion on how to grow magazine sales and support small business newsagents.

mUmBRELLA published my contribution yesterday. In this article I call on magazine publishers to supply newsagents and not supermarkets, thereby refreshing us as magazine specialists, giving us commercial reason to re-engage with the channel and allowing us reason to support the category as professionals and not as competitors to better funded and better supported but less engaged competitors.

I am serious in this suggestion as I am confident that if magazine publishers were to supply newsagents and not supply supermarkets, newsagents would partner with them to arrest the sales decline.

Newsagent responds to magazine publisher complaints and advice

It is frustrating reading that magazine publishers bagged newsagents at an industry forum without newsagents having a reasonable right of reply. But maybe that is how publishers like it, maybe they don’t want to mix with newsagents. We do, after all, only sell 50% of magazines sold in Australia.

Nicole Sheffield, the CEO of NewsLifeMedia says we need to exert more control on the titles we receive. Ash Hunter, CEO of Hunterfive Group, says newsagents entering the channel are of a poor standard.

While these opinions could be factors in challenges for magazines, they are only opinions. Sheffield, Hunter and other publishers ought to look at the facts. They took what was a specialist channel and took from it around 50% of magazine revenue and gifted it to supermarkets and convenience stores.

This new competitive landscape facilitated by the publishers left newsagents with less profitable titles. Newsagents and now, finally, responding by reducing retail space and labour they invest in the magazine channel. This is causing newsagents to not display all the magazine inventory sent as they no longer have the space for it.

Indeed, there is a fundamental disconnect between the retail space available in newsagencies and the inventory sent. Talk to Gotch and Network and they will agree – they do not know the retail space allocated to magazines and that they do not know is not a factor in what they send. Nuts!

If Australia wants a profitable magazine publishing channel it needs a profitable route to market. Newsagents are the best opportunity. Plenty of them want to be the magazine specialist, a destination for the magazine shopper. But the numbers do not work. The numbers could work if publishers ignored supermarkets and helped direct more magazine traffic to newsagencies.

My proposal is simple – make newsagents the magazine specialists by only supplying them.

This single move, of choosing to place titles exclusively in the newsagency channel, would encourage newsagent support. I am not talking here about one or two titles. No, I am talking about hundreds of titles, popular titles, titles in the top 200 even. Place these exclusively in the newsagency channel and you change the game, you get the attention of newsagents, you push back against the supermarkets and you respect your product.

While I am confident that a bold move such as I outline here would benefit publishers and newsagents it would need careful negotiating, involving many titles and requiring thoughtful newsagent engagement. And, yes, there would need to be a discussion on margin. Rent and labour in retail are considerable expenses and titles not paying their way serve no purpose in any retail business. However, margin can be considered in various forms. For example, there could be a base stocking fee or some other levy to support the category.

If sought after product is only available in one channel then the two main parties to such a relationship, the publisher and newsagents, ought to benefit. We would have a shared commercial objective, far more so than exists today.

My call to Sheffield, Hunter and other magazine publishers with opinions about magazines in newsagencies is simple – engage with us, invite us to your conferences, work with us on a =n alternative model as the current model is not working for anyone. Oh, and don’t engage with the newsagent associations as they are out of touch on this and most other issues as history has shown.

Footnote: I’d love Nicole Sheffield to explain the News Corp. position on pricing Inside Out $2.00 a copy less in Coles than in newsagencies.

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magazine distribution

Double standards from Bauer on magazine oversupply?

IMG_1115 (1)How do newsagents feel about Family Feud Word Hunt from Bauer Books that arrived in-store today?

At an ACCC conference a few months ago Bauer management said they feel for newsagents and want to act on oversupply and that their MPA trial was all about seeking fairness for newsagents. Then they do this.

The puzzle space is sell catered for. These titles are not needed.

This looks and feels like oversupply. What do others think?

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magazine distribution

Did you get Coaching Life magazine?

IMG_1325We received Coaching Life magazine, a title we do not expect to sell. because of how the magazine distribution model works we are now a financial backer of this launch issue, investing retail space and labour into the title. We are also a banker in that we will pay for the title at 30 days, return what we don’t sell and, a few months after the title arrived we get our money back. This is why I mean by being a banker – our cash is used to financially support the distribution of the title.

I get that publishers want to launch titles and that the newsagency channel is pretty much the only channel for the launch of niche magazines. Expecting newsagents to invest space, labour and cash without any control over whether we get a new title or the quantity we receive is unreasonable. delayed billing is not the answer.

I want to be paid for the space and time to be invested into a launch. I ought to be compensated if the launch title fails to perform. Otherwise I am encouraged to reduce further my commitment to magazines.

read what I wrote in 2005 and again last year on supply standards as I covered this issue at length.

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magazine distribution

Newsagents need to get tough with publishers over what they stock, says NewsLifeMedia CEO

The headline of this post is a direct lift of the headline of a report published by mUmBRELLA yesterday. While I urge newsagents to click on the link and read the article, I will post portions here and comment.

The boss of publishing house NewsLifeMedia has said newsagents need to be more critical about the range they stock and emulate the way that supermarket giants Coles and Woolworths operate.

I am not sure what Ms Sheffield is reading but I think newsagents have been vocal for years. Look at the recent comprehensive submissions to the ACCC, copies of which were provided to NewsLifeMedia as well as other publishers and the distributors.

What we learned from this and previous experiences is that being critical achieves nothing. The lesson from the ACCC and other recent experiences is: complaining gets you nothing.

Speaking at Wednesday’s Publish conference, Nicole Sheffield said: “Every time there is a range review [at a supermarket] it’s got nothing to do with anything emotional, social, digital – it’s what that pocket is yielding me and if it’s not doing it, you’re off the range,” she said.

As it should be I say. Retail is tough for supermarkets and for us. If a product does not pay its way it ought to be removed. The challenge for newsagents is we are not permitted the same control of supermarkets. This disadvantages us and advantages supermarkets. The model agreed by publishers and supermarkets is a model that makes newsagents less competitive.

“Newsagents are under enormous pressure. There’s a lot less of them. Running a newsagency today is a very difficult, challenging business. You’ve got print products that are in decline and you’re heavy reliant on lotto.

Nicole needs to get out more and understand there are now considerable differences between newsagencies.

“People used to go there for a lot of different reasons and we have to be a reason to make them a destination again.”

Yes, I agree. Magazines ought to be a reason for newsagencies to be a destination. I have a proposal regarding this and will submit it to mUmBRELLA for publication consideration. More on that later next week.

Sheffield’s comments followed those made by Ash Hunter, the chairman of Publishers Australia and CEO of Hunterfive Group, who said the influx of new, poorly trained newsagents is causing problems and it is something the print publishing industry needs to address.

“There is a fundamental failure that’s taking place within the newsagency network and part of it is quite challenging, it’s around cash flow,” he said.

“Many of the new newsagents coming in don’t understand the business as well as they should and they have to manage cash flow.

I’d love to know Hunter’s evidence for these statements, especially the last statement. Sure, there are some who don’t understand the business. That is a failure of the parties that approve entrants: Tatts, magazine distributors, newspaper publishers – any supplier agreeing to open an account. That said, under needs to back the statement with evidence.

Hunter then picked up his game and got to a core issue:

“The issue is reducing range and sending back their returns. This is an area where part of the (print) decline is due to neglect to that distribution network.”

He said it was handing the power to the likes of Coles and Woolworths who typically stock magazines from the larger publishers like Pacific Magazines, NewsLifeMedia and Bauer Media.

What I am submitting to mUmBRELLA to consider publishing next week is one option I think could address this issue.

Publishers can complain all they like. If they want the situation to change, they need to change. They also need to engage commercially and not through the industry associations as that has proven to be a waste of time for years.

I do have a plan to put out there for suggestion. More on that next week. Hopefully, too, more plans from others on this critical issue for smaller publishers and newsagents.

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magazine distribution

Newsagents talking magazine distribution with head of Gordon & Gotch

Screen Shot 2015-10-14 at 3.55.40 pmNewsagents at the newsXpress national conference in Sydney Monday got to spend an hour in a Q&A session with David Hogan, head of Gordon & Gotch.

The planned thirty minute Q&A extended to an hour as David and newsagents talked through allocation processes, partworks, Gotch profitability, US title pricing, the damage of ignorant early returns and other topics.

Nothing was off limits and all questions were answered.

On early returns, one example was given where hundreds of newsagents did themselves out of guaranteed revenue because of early returns.

The conversation was interesting as it provided context to challenges around circulation such as with the partworks model where Gotch is as much a victim as newsagents when faced with a runaway success such as Art Therapy. I know many newsagents in the room were surprised by the lead time.

It was good to have a magazine discussion based on facts. For example, one newsagent wanted to know how to stop a magazine for more than a few months. David shared the answer. The newsagent wanted a guarantee to never get the title again. David explained why that is not ideal.

There was no yelling at each other, no anger – just a good professional discussion looking for mutual benefit.

There was a good discussion, too, about floorspace allocation for magazines in newsagencies and work being done by Gotch to drive efficiencies that should benefit newsagents.

With several newsXpress members engaged in the MPA trial there were some questions on that – with ensuing discussions helping more in the room understand what is happening.

What was fascinating was a discussion led by some newsagents into the type of magazines newsagents feel they could sell. This discussion flowed from comments about adult colouring books. With Mychelle Vandenburg, the Retail Sales and Group Marketing Director for Pacific Magazines, in the room, newsagents, the head of Gotch and a senior publisher representative had a terrific three-way discussion about ideas to help everyone benefit not only from this craze but to explore how similar crazes could be explored cooperatively. I found this discussion specifically valuable.

What happened at the conference is an example of what newsagency marketing groups can do outside what is usual for a marketing group.

I am grateful to have been a participant in this discussion.

With magazines continuing to be an important traffic driver for our channel, it is important we explore ways to transact with the category more profitably. Achieving that requires respectful and engaged publisher and distributor relationships.

Footnote: I reached out to David while he was overseas at a distribution conference and he accepted the invitation immediately. He arrived back in Australia on the weekend and was with us on Monday.

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magazine distribution

Why I want higher margin better selling diaries

IMG_0012The space allocated to these diaries costs close to $40 a week in rent. That is what I need in gross profit each week to cover the space cost.

Publishers say the sale or return model mitigates risk along with the generosity of delayed billing. Neither of these things pay the rent and rent is the issue. It goes up 5% every year without fail. We either sell more or get higher GP$.

Unless publishers address the rent issue, newsagents will continue to reduce space allocated to lower margin product.

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magazine distribution

Advice for newsagents on how to manage magazine space allocation for profit

Screen Shot 2015-09-24 at 8.51.37 pmWith magazine cover prices not keeping up and no movement in newsagent margin percentage, the only option is to cut the cost of carrying magazines. While most newsagents have cut labour costs by using newsagency software to manage sales and returns, many are yet to manage the retail space.

I created a spreadsheet space cost calculator. This is the first step to managing magazine space for profit: understand your weekly magazine pocket cost. It could be that your cost is small, making magazines profitable.

In most newsagencies, however, the high cost of retail space and the high cost of labour will mean a high per pocket cost. Pocket costs are exacerbated by systematic and planned gross oversupply of stock to newsagents.

The best way to cut the overhead costs associated with magazines is to reduce the space allocated. This does not mean cutting magazines, or at least not cutting as many magazines as you may think. No, it is all about reducing the amount of space allocated to magazines.

Here are the steps I recommend newsagents take. They are steps I have followed for years in my own newsagencies. They are steps I have recommended to others with success.

  1. Relay your magazines. Get the right layout for your business. This is the appropriate next step as the work itself reacquaints you with what you sell. Click here for my updated advice on how to do a magazine relay.
  2. Reduce space used. In some title categories of your magazine department you will be able to fit more than one magazine per pocket. You may fit three magazine titles into two pockets or five titles into three. Every pocket saved is space you could use for something else. Here are examples of categories where I have seen this work:
    1. Woodworking.
    2. Model trains.
    3. Trains / planes / boats.
    4. Special interest auto.
    5. Special interest sport.
    6. Special interest music.
    7. British weekly.
    8. British monthly.
    9. Fringe fashion.
    10. Intellectual.
  3. Decide how many magazine pockets you will cut. Do this by running a Magazine Sell Through rates report. Titles with a sell through of less than 40% ought to be up for consideration to be cut. You decide your cutoff point based on your business needs. Be thoughtful in your process. Do not approach this task with anger.
  4. Decide other changes for magazines. The report you produce in the above step will also show top selling magazine titles. Use this data to chase a sales increase. Leverage the positive information for your commercial advantage.
  5. Do not try and do everything at once. Expect to cut space several times. For example, if you have 1,200 pockets today and you have 500 titles with a sell through of 40% or less, cut 300 pockets in your first go. Do this, measure over several months, plan then consider doing it again.
  6. Advise the magazine distributors. Write to each distributor on your business letterhead advising them you have cut magazine pockets by xxx. Be specific on the number of pockets and the percentage of space cut – this is important. Advise that the change has been made. Ask they immediately cut the number of titles by the same percentage as your cut. Ask for them to acknowledge the letter. Fax the letter and post in an Express Post envelope – keep the tracking number of the envelope.
  7. Watch your supply. If, after three weeks, there is no reduction, send another letter with a  copy of your earlier letter.
  8. Watch your supply II. If, after a further three weeks there is no reduction, act by making a complaint to your local Small Business Commissioner. Request mediation. Explain the steps you have taken and why you have taken. Ask for their intervention.
  9. Consider legal action. Consider using VCAT, QCAT or a similar state based tribunal to have your complaint adjudicated. This action will force mediation. Note: it is at this point that most newsagents will give up, preferring to complain than following a process to the end. Taking the matter to a tribunal is vital if you want to demonstrate you are serious in your endeavour.
  10. Use the new space. There is no point in cutting unprofitable magazine space unless you have a plan to use it for something else. You should not start work on the list I have documented here unless you have a valuable use for the space you will free in your business.

Despite what the magazine distributors might say, you have control over the magazine space you pay for. The process outlined here, while time consuming, provides the distributors with a visibility of data about your business on which they must act if they are ethical in how they run their business.

I urge you to give them the benefit of the doubt embedded in these processes. I am confident that if you follow the processes I have outlined you will achieve reduction. It may take some extra steps or duo ling of work – but it will work.

Keep your communication civil. Be clear that you do not want to quit magazines altogether. Outline your cost base and that unless the change you seek is brought about your business is under broader pressure on its very survival.

Magazines are important in any newsagency. The million dollar question is how many magazines? I think that number is currently somewhere between 600 and 700 titles. I am confident this figure is understood by key people in magazine publishing and distribution. Thanks to the work outlined here you can fit 700 titles today in the space you would have used for 1,000 titles previously.

The difficulty right now is that we newsagents are agitating for more efficient supply while magazine distributors are operating with some publisher contracts that hark back to a time when there was less pressure on the issue of oversupply.

There is no shortcut to this process, no way to avoid the work of the steps above. Sure, there is a time commitment. It is your business. You need to invest in its future. Complaining about having no time takes time away from getting the work done. get on with it – pursue the one goal of achieving a lower overhead cost for magazines in your business.

What do you think? Let me know. Also, let me know if you need help.

To publishers: if you read this and worry about your title, my advice is only worry if your title is supplied at a volume that makes it unprofitable for newsagents. The equation is simple really – oversupply and your title is more likely to be cut … as it should be.

To the ANF: Where are you in all this? Lost at sea, preferring to hop behind publishers and distributors without offering critical analysis and professional thought to practical steps newsagents can take.

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magazine distribution

Do you check for magazine returns discrepancies in your newsagency?

When you scan magazine returns, your newsagency software should provide to you a report listing discrepancies between the magazines you scanned for return and what your newsagency software thinks are to be returned based on arrival and scanned sales data.

Do you check your discrepancy report?

Checking the discrepancy report is a basic newsagency management task. In a few seconds you can see if you are returning all magazines due to be returned. The report also highlights for you magazines that may have been stolen. This last insight is important with theft accounting for between 2% and 5% of product revenue in a typical newsagency business.

It frustrates me when I am asked to help newsagents deal with a magazine returns problem and discover they do not regularly check for discrepancies between what they should return and have scanned for return. In these instances these newsagents have operated in ignorance by not checking the accuracy of their returns.

One I spoke with recently said their returns were being done properly. It turns out they were;t being done properly. Checking the discrepancy report would have highlighted this when it happened rather than using the report after the event to support the claim back to the newsagent that they were managing the returns process incorrectly.

Scanning returns is simple. The overall magazine returns process is equally simple. That said, people do make mistakes. Time pressures, poor training of new employees, tack interruptions, ignorance and other factors can lead to the scanning of returns being incomplete or wrong.

Laziness about the technology itself – hardware, software status and internet connection – can also play a role in returns not being processed accurately and to the level of compliance required by XchangeIT and through to the magazine distributors.

Given the long established standards overseen by XchangeIT and their process of compliance over the accredited newsagency software companies it is hard to get it wrong, hard to fail at returns processing but fail some newsagents do.

I think all of us who work with newsagents on the management of their businesses need to revisit the basics, we need to help them get these everyday tasks right, to lift the quality of business performance and reduce the occurrences of mistakes as every mistake has time and cost consequences not only for newsagent businesses but also for supplier businesses.

I appreciate this is a long winded blog post. Please, take a moment to check that your magazine returns processes are best practice.

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magazine distribution

Art Therapy update for newsagents

Here is an update from within Gordon and Gotch late yesterday about the Art Therapy partwork:

Part 2 stock was based on their retention curve (the curve of the publisher) but due to the early sales data we presented last week to the publisher they are air-freighting some more stock from the UK today of Part 2 that we need to finish before sending out to cover any back-orders. The publisher has just confirmed to bring forward part 3 supply to next week and we have also managed to secure a bit more additional stock for this issue. We will send a further newsagent update by the end of the week.

The supply situation newsagents are experiencing with this title are a function of supply decisions by the publisher. I feel for the folks at Gotch as they are the servant of the publisher.

To those newsagents complaining about supply – there is nothing new here. We have seen it for years – an amazingly successful partwork for which we cannot get enough stock and where supply drops dramatically as we get deeper into the series. We have to manage the opportunity expecting this, making the most of what we can. This is why I said I think newsagents early returning part one were nuts because they missed the opportunity of leveraging that traffic into other products.

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magazine distribution

Disappointed at Lovatts low-margin adult colouring title

lov-colLovatts has entered the adult colouring space with Inklings. They are late. Adult colouring took off ten months ago. While I didn’t receive the title other newsagents have and they needed to find space in full magazine departments. They also had to deal with yet another low margin title in a category from which we can easily earn 50% gross profit.

Newsagents with the title will be frustrated to know Lovatts has placed the title in supermarkets.

Smart newsagents want adult colouring titles through which they can leverage a point of difference over supermarkets. This is where book and art supply suppliers help us.

Magazine publishers need to not be overloading newsagents in this already full segment.

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magazine distribution

Did you receive Business First magazine?

CMpd23dUkAA36ZDGordon and Gotch is promoting Business First magazine, saying it is in newsagents now. The appeal of this title is so niche that it ought only have been distributed to newsagents who opted in. I am not aware of Gotch did this as I didn’t see anything from them on it. It is only when good newsagents have complete control over the magazines they receive that they will feel trusted to apply their full skill set to the category.

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magazine distribution

The problem with new magazines for newsagents

IMG_8945A consequence of magazine publishers and distributors failing to address the poor financial return from magazines for small business newsagents is a reduction in space allocation in newsagencies for magazines.

In real terms we make less today than five years ago yet the cost to us of magazines has increased between 5% and 10% year on year through this time.

Whereas in the past magazine departments took up a third of floor space, today the space allocation is 25% and less – meaning fewer pockets and no spare space.

The problem is exacerbated by magazines in so many more outlets than newsagents. No wonder we are tight on space. We have to be!

Magazine publishers and distributors need to stop sending us new titles without checking. Many of us have no space for them and have to remove an existing title if a new title is to be given space.

This happened recently with two new titles from Universal Magazines: Beach & Bayside Homes and Kitchen Inspirations. We did remove two titles.

It is ridiculous that in this age of technology the publishers and distributors do not have in place a system to know for certain space availability in our stores. It is like they prefer to be ignorant as this enables them to send us magazines we do not have space to display.

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magazine distribution

Newsagents help

IMG_2886 (1)Check out the magazine a friend found in a bag with the copy of Gourmet Traveller they purchased from Woolworths last week. We can tell from the sticker left on by Bauer that the magazine is a return from a newsagent. The newsagent would have paid to return the copy of Belle that failed to sell for them so Bauer could make the gift to the Woolworths customer. Nuts.

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magazine distribution

Frustration with IPS

IMG_8814 (1)I like Forge magazine but I do not like that I get four copies when I only need 2 and that I have to keep it on the shelves longer than viable given the cost of the space it occupies.

It is tough and often unprofitable work being a magazine specialist.

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magazine distribution

Updated advice on doing a magazine relay in your newsagency

In the three years since I published my article How to do a magazine relay in your newsagency plenty has changed. In this post I provide up to date advice. I hope you find it useful.

Before you start the relay, consider the amount of space you want to allocate to magazines. Do not allocate space to fit what you are sent. Allocate space to make money.

Today’s newsagency needs somewhere between 15% and 25% of floor space allocated for magazines. With the category one of the least valuable in pure gross profit terms efficient use of space is key.

Once you have your floor space allocation and know your fixture situation you will have a pocket count.

Now you can get down to your relay.

The relay you do in your business is your relay. There is no right or wrong way. There is also no end point. What you do today will need refining next week and the week after. So, do not over think what you want to do as that would be a waste of time.

The goal of the relay has to be to disrupt magazine traffic in pursuit of an increase in sales. What I mean is: change everything, upset customers and staff, sell more magazines as people discover titles they did not know you had.

PLANNING

Determine your zones shopper: garden, food, men, women, sports etc. In some locations you will full face titles while in other locations you will fit three titles into two pockets and in others as many as six titles into two pockets. The categories where I use less than one pocket per title is: special interest, British weeklies, food, comics and some craft segments.

Yes, customers looking for a destination title for which you receive a small quantity will look for the title. Save money, use less space for these titles.

Look at the percentage of sales delivered by each magazine category and look at sales trends for the categories.  Tote up broad groups. For example the percentage of sales for women’s weeklies, women’s interests, crafts & hobbies, crosswords, home & lifestyle and food & wine.  If your newsagency is like mine, this grouping will account for more than 50% of your magazine sales.

Use your data to broadly map out a plan.

NOW, THE MAGAZINE RELAY

I suggest it is done by one person, an owner, working alone.

  1. Take every magazine off the shelves. That’s right. If you are going to do this you have to commit and taking every magazine off the shelves is a commitment.  Also, take down all magazine posters.
  2. Clean the shelves. What an opportunity!
  3. Build the women’s zone. From the busiest section in.  If it is an aisle, start with women’s weeklies on one side and fashion (marie claire, Cleo, Cosmo, Vogue) on the other.  Concentrate on one side first, the weeklies.  Respect top sellers, give New Idea, Women’s Day, Famous, NW, Who, OK!, That’s Life and Take 5 prime position.
  4. Place a half or full column of crossword titles next to the weeklies.
  5. Next to weeklies place, in order, pockets of Better Homes and Gardens followed by Australian Women’s Weekly, British women’s magazines (yes, all of them), country living titles, home and living titles, food, wedding with a waterfall of the major title and hair.  For me, space wise, that sees out one side of the aisle.
  6. On the opposite side, directly across from and facing women’s weeklies, I have fashion young, fashion older and I end this with a waterfall of Frankie.  Next is women’s health starting with younger target titles and blending to older ones. Next is pregnancy and baby followed by crosswords. This usually rounds out that side.
  7. This is my women’s aisle.
  8. Using key titles as borders and features at the same time.
  9. I look for one space on each side for an in-location display, where I take between four and six pockets for a poster supporting a title.  This can ease the visual conflict of a mass of titles and drive incremental business for a good title to boot.

What I do in women’s is the same for the other zones I create.  I do each zone separately and try and get into the head space of the shopper of the zone – using the most popular titles to act as beacons, or signposts, for the zone.

I also take note of covers and give really good covers, eye catching covers, time in the spotlight.

I am careful what I place next to top selling titles. This is a prime spot, next to the popular titles. Choose wisely. Choose titles that naturally fit next to the big titles, titles shoppers are likely to browse and purchase on impulse.

If I am not sure about where to put a title I put it aside and move on.

I take extra time with special interest and hobby titles.  For example, I put railways and model railroad titles near each other but I am careful to ensure that they are separated as they appeal to two shoppers and only occasionally do you see titles from both segments in the same basket.

Within the zones I look for and respect specialisation. For example, within men’s lifestyle and sports I create a clean space for the quality serious fitness titles like Coach, Men’s Health and Men’s Fitness.

REVIEW, FEEDBACK, FOLLOW UP

You’re not done when you think you are done. Track sales, listen to your team and your customers. Tweak where you feel it is necessary.

Bring new issues to the fore. Continue to be engaged in how your magazine department looks.

Continue to look at your sales data.  If there is no lift be open to further change.

FINAL WORDS

Doing a magazine relay can be like doing one of those kid’s puzzles – you move them around and around until you have the completed image. That image can look and feel like a work of art once you are done.

I can’t stress enough the importance and value of a magazine relay to your business and you personally. This is you placing your stamp on the business.  It is you breaking free from being a conveyer belt newsagent. It is you taking ownership of your business.

If you have made it this far, thanks for reading.  Magazines really are a point of difference which we need to work harder at embracing – despite the challenges of the distribution system.

I’d be happy to answer questions or discuss magazine relays with anyone: mark@towersystems.com.au or 0418 321 338.

Over to you…

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magazine distribution