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marketing

A personal shop local pitch cuts through more

Small business retailers love to call out for people to shop local and save jobs. Often, such pitches consist of sharing art created by others. I think a more personal pitch is more likely to get better engagement.

Make a more personal pitch by using your name and telling more of a story.

Here is a pitch I saw in front of a coffee shop recently. That I noticed it shows some level of cut through.

Here is a close-up of their second sign. I am sharing this as it is an interesting type of engagement – shoppers donating to get a tattoo for the business owner.

This shop is in Copenhagen so there may be local interests and culture at play here. Jack wasn’t there so I couldn’t find out.

I guess my point is that we all have to find our own way on how we engage to pitch shop local. Sometimes it is easy. Other times it takes a few missteps before we find our way.

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marketing

Make the most of terrific Better Homes and Gardens Christmas gift offer

Newsagents who are part of the Pacific Magazines nexus program have a terrific marketing opportunity to this week thanks to this Christmas-themed gift with purchase with Better Homes and Gardens magazine. These cake pans will be popular – but you need to be onto this right away.

Placing the display unit at the front of the store, where every customer entering the business can see it, will increase sales. This is not a hope, it is fact based on the sales results from last year. Comparing the performance of stores with a gift with purchase offer in a stand like this placed in the best location versus those without and those who did not leverage their stand.

My advice is if you are part of nexus, go out with this stand right away, in the best location. Plus, promote it on social media. This is a traffic generating opportunity as it differentiates your business from competitor businesses. Understand the value of being able to say shop here for this limited-edition gift with BHG that it will be hard your you to find in other retailers.

Yes, I have said here before that promoting magazines on social media is usually not worth it.l This is different in that you have something to promote that others do not have. That is why I say go for it!

If you compete with supermarkets, c-stores, petrol outlets and similar, actively leverage this offer as they will not have it. This is your moment to distract from them.

How well we as a channel engage will be watched not only by pacific but by other publishers. This is out opportunity to show we can do national differentiating promotion well.

While the gift with purchase pack does have a slightly higher cover price, the increase is considerably less than the value of the gift.

Note: retain these bins as the December issue of Home Beautiful will be supported with another NEXUS only GWP that is also themed around Christmas and is a bakeware.

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magazines

Marketing tip: the value of interest tags on social media posts

Using an interest tag on a Facebook post can reduce the reach of the post. However, it can also ensure the post is seen by more people who will appreciate and / or engage with the post.

My advice is that you research a tag prior to using it. Get a feel for its value in terms of reach. If you gauge sufficient appeal, use it.

I used the tag teacher recently and got a post seen by people who may have otherwise missed it. The actual reach of the post was lower than usual yet the practical engagement was higher.

Tagging interests takes time. The rewards can be valuable.

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marketing

Newsagency marketing tip: bring warmth to your shop layout

Best practice in retail layout and fixtures today is to no longer use traditional built-for-purpose fixtures. The more everyday warm furnishings you use the better, with different colours, shapes, sizes and textures. Real life used is even better. Sorry traditional shopfitters.

No longer does everything you use to display and hold product need to look the same or connected.

Here is a good example from a leading US fashion and homewares store I saw recently. Their use of the cupboard is exactly what I am talking about.

Click on the image for a larger version.

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marketing

Newsagency marketing tip: don’t promote competitor businesses

I don’t understand why newsagents share on their Facebook page a post from another newsagent’s Facebook page where they have no commercial or group relationship with the other newsagent.

If you like what they have done and you have the product in your shop too, write about it yourself.

Sharing can be lazy posting. It is okay sometimes, but often not.

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marketing

newsXpress TVC is driving in-store traffic

It has been hard for Foxtel’s 2.2 million subscribers to miss the newsXpress TV commercial running over the last week. Funded by newsXpress and supported with a strong social media campaign as well as in-store marketing, the TV campaign has been successful at driving net new traffic.

Basket data indicate valuable engagement beyond the basic buy 2 get 1 free pitch. Plenty are buying more of the promoted Beanie Boo product. Plenty are buying other products while in-store.

Landing new shoppers in-store is tough work. newsXpress is doing this at a national level for its 243 retail locations and doing it through a product that historically was a toy shop and national retailer product. The campaign is part of a long-term and integrated strategy that has recast the focus of newsXpress to new traffic areas while not disrespecting traditional newsagency shopper traffic.

To those who say the buy 2 get 1 free deal is nothing special – you’re entitled to your view. This is the second year running this promotion for a reason.

To those who may want to mock Beanie Boos, a country town newsagency with a population of 5,000 selling $23,000 in Boos in a year and achieving the best return on floorspace of all products in-store from Beanie Boos is one example of many success stories. In the city and country, Beanie Boo and associated exclusive products are an excellent new new traffic driver product.

To those who want to criticise newsXpress for any reason, that is your right. However, criticise with facts. The facts here are, this campaign is a terrific commercial and new traffic success.

To those who may say not all newsXpress members participated, yes, that is true. I think those who chose to not participate are dills.

To the other marketing groups who say I should not write about newsXpress here, remember, there is an open invitation for you to share your success stories here.

Note: I am a Director of newsXpress.

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marketing

Now is the time to promote the AWW health Diary

Right now, right away, is the time for newsagents to promote the Australian Women’s Weekly Health Diary. This is an ideal title to pitch on social media as well as pitching in-store, in a prominent position where more eyeballs see it than in its usual location.

Toing hard now is vital if you want to win sales that may go to other retailers. Approach this as a speed to market competitive situation.

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magazines

Marketing tip: smart use of social media

The folks at Tims garden Centre in Campbelltown use social media well to connect with the local area and to compete with big retailers. This post from them showing off the performance of their potting mix compared to that from a big retailer is a perfect use of social media. They market by showing. The evidence speaks for itself in terms of the superior products they sell and in terms of people who engage with their Facebook page.

Social media posts need to entertain, inspire and / or help people feel good. What they do at Tim’s Garden Centre is ideal.

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marketing

newsXpress seeks out new shoppers with unique t-shirt product

Newsagency marketing group newsXpress last week launched Chalk-Apella t-shirts through its retail locations.

Sourced direct from the product creator at an international gift fair months ago, newsXpress is helping members launch the products in-store with stunning displays, a professional (A1 printed both sides) poster and a locally made marketing video.

newsXpress sourced the t-shirts direct from the supplier. It has managed the launch inn Australia: providing marketing posters, producing videos, creating best-practice displays and supporting the launch with a massive social media campaign and backing it all with a terrific website.

Here is an in-house produced video launching the product:

Here are a three of the in-store displays:

Here is newsXpress collateral provided in digital and A1 format for in-store use:

The reasons for sharing this are to show the launch of a product that is different to what you might expect to see in a business from the newsagency channel and to show how the new product is being launched in-store.

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Management tip

Newsagency mareting tip: preference suppliers who promote you

Before you take on a new supplier, ask them what they will do to help drive shoppers to your business. Specifically, ask if they have a link on their website to their stockists and whether they would add you to the link.

If there is no link then the relationship will not be as valuable as it may be – especially if the brand is well known and sought after.

The more suppliers linking to your business the better.

In terms of existing suppliers, check out how they promote small business retailers compared to big business. If they favour the latter over you, have a conversation with them.

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Management tip

Value add is a better marketing move than discounting

Discounting is lazy marketing, unless it is an end of line discount to move the last of stock you have or unless it is an event related discount.

Everyday discounting is what I am saying is lazy marketing, discounting being done so you can say you are cheaper than other retailers.

I say discounting is lazy as it is easy. It is easy to copy or beat, making it risky.

In my experience, a better approach is to change the conversation, to change how people view a product. You can do this by bundling the product with other items to create a hamper or package that is unique to your business. You can also do it by creating a multi-buy offer of a price for a single or a better price when, say, three are purchased. You could also create something unique in your business as a value-add for the product, something that the customer will appreciate, that they can only get from you.

There are other approaches you could consider too where a product is seen as being a better offer from you even though you are not discounting as such.

My point is, discounting is easy to do and easy to copy. Shoppers buying only on price are not loyal. Add value is some way and you are more likely to be remembered by a shopper.

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Management tip

Marketing tip: pitch Father’s Day cards at the counter

The right Father’s Day cards placed at the counter will achieve incremental card business for you, easily. The key is the thoughtful selection of cards. The next important point here is location – placed so every shopper presenting at the counter sees the cards.

Doing this is helping is achieve good Father’s Day card results for us already.

The photo shows one of two pitches at counter positions in the business. This is in addition to lease lain placement of the main range, facing into the mall.

Note: the cards in the counter units change every few days, based on the anticipated shopper mix that day.

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marketing

Newsagency marketing tip: make gift buying easier

Display pre-wrapped gifts with suggested cards and make gift buying from your shop easier than anywhere else. Guys especially like this service.

This is a terrific way to differentiate your business. Wrap each gift differently, make it personal as that is what shoppers are looking for.

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Gifts

Q2 newsagency sales benchmark study results

The April – June quarter was tough for core products sold through the newsagency channel. In addition to the continuing decline in print media sales, this quarter’s benchmark results reveal a troubling downturn in lottery revenue as well as card revenue.

Here are the headline numbers by key product category:

  • Magazine unit sales declined 11%.
  • Greeting card revenue declined 4%.
  • Lottery revenue declines 4%.
  • Newspaper unit sales declined 12%.
  • Gift revenue increased by 11%.
  • Toy revenue increased by 16%.
  • Stationery revenue declined 8%.

These are not good headline numbers. The bottom is falling out of the historic core of the newsagency channel. This will not be news to many as it continues a trend we have seen in this benchmark study for several years.

The above percentages reflect the overall performance of the 181 newsagency businesses in this benchmark study. It includes stores from a range of banner groups as well as independents. There are large businesses and small. Some are in shopping centres while others are on then high street. The cross-section is broad.

What is concerning is the pace of decline, especially with magazines as the decline had slowed recently. Looking more closely at the data, the decline is in the volume categories. Fringe categories such as special interest titles are doing well. Indeed, some segments show terrific growth.

Newsagents need to manage the overhead cost of newspapers and magazines. Labour, space and capital investment needs to be kept in line with the gross profit contribution of these categories. Busy work relating to newspapers and magazines should be eliminated.

The decline in greeting card revenue is a surprise. The reported percentage of decline, 4%, does not read well. However, like all the above data points, it is an average from the entire data pool. There are stores experiencing decline above 20% with others reporting growth above 20%. There is a clear correlation between stores with strong gift sales and card performance – in this case card revenue is stronger.

GOOD NEWS.

The good news is the performance of businesses playing outside the traditional space. For example, the newsagency with $25,000 in toy revenue in the quarter, reflecting growth of 18% or the newsagency with $45,000 in gift revenue and year on year growth of 22% of the newsagency with card revenue of $47,000 and year on year growth of 22%.

There are many good news stories in the latest study results. However, the good news will be overshadowed by the performance of the majority. It is challenging, some days, to know what to do or say to cut through with newsagents who are not engaged.

Too many newsagents think growth will come from categories close to what they have done historically. For example, too many get into cheap social stationery thinking that is competitive with Kikki.K or Typo.

My experience is the best growth comes from turning away from traditional lines and traditional suppliers and going with products and price points you would never have considered for a newsagency business. I see this approach working well in the benchmark results in businesses of different sizes and in different situations.

OVERALL PERFORMANCE DATA.

  • Customer traffic. 78% of newsagents report average decline of 5%.
  • Overall sales. 53% reported an average revenue decline of 3%.
  • Basket depth. 61% report a 2% decrease in basket size.
  • Basket dollar value. 63% report a decrease in basket value of 3%.

It is in the overall business gross profit numbers where the differences in businesses can be seen. 62% sit in the traditional newsagency GP performance band of 28% – 30%. 7% sit below 28%. 20% sit in the GP band of 30% and 35%. 7% sit between 35% and 40%. The rest, 4%, have a GP of more than 40%.

GP is a function of what you stock and the type of shoppers you attract to the business. Buying is where it starts.

WHAT IS DRIVING THE DECLINES?

Close to 80% of the businesses in the benchmark reported a decline in traffic with the average decline set at 5%. However, just over half reported a decline in revenue. This is because plenty are selling higher priced items, usually gifts. This softens the blow of the decline in legacy products.

I think the traffic decline is being driven by a decline in interest in legacy products on which traditional newsagency businesses have relied. I have said for years it is crucial newsagents have a strategy to drive net new traffic. Relying on legacy product to sell new products is not a plan. You need to source new products and to use these to attract people to your business who would otherwise not have shopped with you.

HOW TO RESPOND TO TRAFFIC DECLINES?

Any newsagency business can be successful, regardless of location and situation. This is truer today than at any time in the past thanks to what we can see being achieved online – not only in newsagency businesses but through other retail channels.

The key to success is to not run the business as a newsagency. That’s is, to not obsess about legacy products. Focus on new traffic products. Focus on price points you would usually say would never work in your business. Buy products you think will never work. Be radical and through discover what is possible in your business.

I urge you to ask yourself daily, what have I done today to reach a new shopper, someone who does not know we exist? This is what successful businesses in the benchmark study are doing and doing well.

DOES THE NEWSAGENCY CHANNEL HAVE A FUTURE?

I ask this every quarter. My answer remains – Yes! Absolutely. If you are prepared to shrug off what has been traditional for a newsagency business, stop hoarding, embrace change and embrace social media – you can have a bright future. The transformation from traditional to the new world must be urgent and dramatic.

AGENCY IS OVER.

My opinion remains – there is no upside in any agency parts of the business. People saying they are proud to be called a newsagent are entitled to their view. History will show that era is behind us.

OPTIMISTIC.

I am optimistic for my own newsagency businesses and for the businesses of many newsagents. Indeed, I have opened a new outlet the last few months. It does not look or feel like a newsagency. The numbers are terrific.

WHY I DO THIS STUDY

My interest in the study is as a newsagent and as a supplier to the channel through Tower Systems and through newsXpress. I want the channel to grow for selfish reasons and because it has been my life since 1981. I am invested.

BENCHMARK GOALS.

I am often asked for benchmark goals newsagents ought to aim for. Here are some benchmarks I have developed in my work with newsXpress and through Tower Systems:

  1. Gross profit: this is the goal gross profit for all product sales not taking into account any revenue or costs related to any agency business. The traditional newsagency average sits at 28% to 32%. For a newsagency focused on the future, the goal has to be at least 45%.
  2. Ratio of Gift revenue to Card revenue: 50% minimum. The goal ought to be 100% or more. If you do $100K a year in cards, target to do $100K in gifts, or more.
  3. Revenue per employee – $250 an hour minimum not including agency revenue. This is a contentious KPI. If you think it is not for you, work the numbers back and see what your number needs to be based on each labour hour in the business.
  4. Revenue PSQM $4,500 – $8,500 depending on country vs. city / high street to shopping centre and depending of product mix. Higher GP lower revenue required.
  5. Overall revenue mix percentage targets: Cards: 25%; Gifts/toys/plush: 25%; Stat: 10%; magazines/newspapers: 20%; other: 15%.
  6. FLOORSPACE ALLOCATION: Cards: 25%; Gifts/toys/plush: 25%; Stat: 8%; magazines/newspapers: 15%; other products: 15%; office/back room / counter: 12%. It’s rare you make money from an office or store room.
  7. Mark-up goals: Stationery: 125%; Gifts 110%; plush: 110%.
  8. Occupancy cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Location and situation are a big factor in this benchmark. For example, a large shopping centre business will have a higher cost than a high street situation.
  9. Labour cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Labour cost should include fair market costs for all who work in the business. (See above).

Mark Fletcher.
Email: mark@towersystems.com.au  Website: www.towersystems.com.au  Blog: www.newsagencyblog.com.au
M | 0418 321 338

Footnote: I founded Tower Systems in 1981. That company now serves in excess of 1,750 newsagents as customers with its newsagency software. In 2005, I joined newsXpress. That newsagency marketing group now serves 243 retail businesses with a traffic and revenue growth strategy.

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Management tip

Videos an important marketing tool on Facebook

Videos have come into their own on Facebook with more and more retailers using the medium to show off products in an entertaining way.

To be successful the need to be entertaining, fun and short. They should not come across as a sales pitch.

Don’t overthink them. Shoot them with your phone and get them live. Most social media content is disposable so they are not things you should spent too much time or money on.

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marketing

Sunday newsagency marketing tip: parties help you find new shoppers

We hosted a shopper party of one of my suburban shops last weekend and achieved more than $2,000 in incremental, good margin, business compared to a usual good Saturday. The party was a terrific success. We are thrilled.

While plenty of customers were local, some travelled and far as two hours to participate in the party.

We spent little on the event and offered only modest discounts. The keys to success were the opportunity for the customers to network with those who share their passion and to see some unique products.

Our marketing was primarily on Facebook. Someone living in Perth called their sibling in Melbourne and told them to come to the party to purchase for them. They did, spending over $100. Based on our conversation, I am sure they will come back.

Simple parties are effective. They are an essential part of the mix to attracting shoppers to the business who otherwise not shop with you.

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marketing

Sunday newsagency marketing tip: use images of card to promote your business

Dig into your cards for funny, unique and hard to find cards and use images of these on social media to subtly educate people about the card range you have.

Few card retailers pitch  cards unsocial media. This is an excellent opportunity for small business retailers.

Funny cards work well as do cards with cute dogs and cats. Also, cards with heartwarming messages and beautiful images.

The keys are to choose carefully and it use the social media posts to show people you have a broader range of cards than they assume you have. Show them they are wrong.

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marketing

Sunday newsagency marketing tip: give people a reason to stop

If your business is in a regional or rural location here is a tip for getting people to stop in front of your shop. Given them something to play with. Try it and see how it goes – this Jenga like idea or something similar. Sure, pieces may be stolen – but I think it is worth it.

Oh, and I say regional and rural because in the city council chills would stop this.

I’d try it if I was in the right location – anything to get people stopping and having fun in front of the business is worthwhile.

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marketing

Sunday newsagency marketing tip: declutter the counter for better shopper focus

If your shop is pitching more than three key product categories at the sales counter you are probably using your counter space and not achieving the return you can achieve.

Ignore history. Push back on what you have always done. Go for a simpler and clearer message and expect better results.

Here is one focussed counter pitch we did with terrific success at pushing how shoppers saw our business.

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marketing

Sunday newsagency marketing tip: optimism sells

Without a doubt, pitching optimism in-store and online works a treat. It is easy to do this through the products we stock. Customers love it, they love the optimistic product at the counter, the happy Facebook post the range of optimistic products in their own section among gifts.

There are plenty of gift and other niche product suppliers of wonderful optimistic and happy products that work in this situation.

Take the journal in the photo, placed at the counter it picked up, browsed and, often, purchased. It is a perfect product through which we can make a pitch about the business that is outside what customers expect of us.

Stocking products like this is a good example of how our inventory decisions can play perfectly into a marketing plan designed to recast the appeal of the business.

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marketing
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