I am aware of an issue for newsagents vending prepaid Visa product through their POS software connecting to Touch Networks. A conference call has been arranged for overnight between Touch and their US based partner for this product to get to the bottom of the issue and sort out a resolution.
UPDATE: It’s all fixed. The problem was at the US end.
A customer a couple of days ago purchased a Rolling Stones calendar after much deliberation – they didn’t want to pay the price we had it at.
Our team member encouraged the purchase commenting that they’d get a discount voucher. It worked.
Once they got their voucher they surprised us by then purchasing a Beatles mug without a second thought – using the discount voucher for some $$ off. This is happening regularly – people worry about how much they will spend on an item and then use the voucher they receive to make a less considered purchase.
Our year on year sales were up 14% in November and I’d put the majority of that down to discount voucher engagement by our team and our customers.
We have learned that discount vouchers fundamentally change shopper engagement. Concerns disappear as do price perceptions about the business. We are known for the vouchers, they are generating net new traffic for us. Plus they make visits, like that of the Rolling Stones fan, more valuable as they extend their basket.
With many shops in our 300+ store centre having access to most of what we stock, the discount vouchers are a point of difference. Our sales results demonstrate that they are a bankable point of difference.
But back to the Rolling Stokes shopper. I’m wondering why they worried about price for the Stones item but not for the Beatles item. Then there is they question of why one customer would purchase both items because back in the day you were either a Stones fan or a Beatles fan. These are questions for another day.
A magazine distributor has asked XchangeIT to research implementing virtual magazine labels. Their thought is that newsagents not label magazines and instead use a hand held device to manage titles.
In a practical sense, they want you to stand in front of a title, remove it from the shelf, scan the barcode, see on the screen the ‘label’ with supply and return data and then act. With the fastest App and or hand lend device the time cost of checking a title would be four to five times longer than right now plus you’d be relying on an extra bit of hardware .
Unless I am missing something, from a newsagent perspective this thought should have been killed off quickly after it was suggested.
To me, it seems the magazine distributor could be interested in making shop floor decisions harder to make. But they will deny this.
Magazine labels today contain excellent information that enable smart newsagents to make shop floor stock management decisions.
In my software company we considered this mobile approach to returns and shop-floor title management around ten years ago when mobile data devices became more affordable. Back then we decided against it for reasons that are valid today. It would be cumbersome, difficult, slow and forcing double handling. We looked at ti again a couple of years ago and decided nothing had changed.
Here is what I wrote to XchangeIT last week about this virtual label idea:
Gavin and Jonathan have just mentioned to me about the possibility of virtual magazine labels being pursued by XchangeIT. I see no benefit for this for newsagents. They’d need technology to check magazines on the shop floor. This and the time delay in checking would frustrate them and cost considerably.
The only benefit of this would be reduced early returns and that would be bad for the cash flow of newsagencies.
Newsagents today usually only print labels for non high-volume monthlies and one shots. They do not do them for weeklies and high volume monthlies. So, the cost of labels is not high. Also, the time taken to actually label is quite low.
The label guides in-store placement. It acts as an invaluable tool in making shop floor decisions.
Australia leads the world in this area. The idea of a virtual label would deny newsagency who use it from access to a tool that is vital to active shop floor magazine management. I think it would be a waste of money for newsagents and those who serve them.
I have made similar representations on behalf of newsagents to the distributor.
If the idea of a virtual magazine label does become a reality and make its way into the IT stands for the newsagency channel, I’ll support it as I do all standards. I won’t agree with it but out of respect for newsagents I will support it. By support, I mean I will end up spending my own money on it to help newsagents.
For those who think software companies will not like this because it will reduce label purchases – I’d say you’re mistaken. Label revenue is small. From my experience the products are offered as a service. The labels can be sourced from many places.
It frustrates me that people who do not run or own or understand retail newsagencies make decisions about IT standards retail newsagents need to adhere to. These people in control of the standards are out of touch. They are not serving newsagents well. They complain that newsagents do not adhere to standards. My response is that this will continue to be the case as long as newsagents do not see any commercial benefit to them in terms of equitable magazine supply.
I wish this magazine distributor would spend more time in getting supply right. Currently, around 65% of what they supply is loss making – the stock is not even paying for the space and labour used to carry the stock. They should be investing in their end to fix this and not pursue this project of folly that has no upside for newsagents.
I wish XchangeIT would more actively represent newsagents ahead of distributors since newsagents provide the bulk of their revenue. Their ownership structure makes such a wish impossible to grant.
Further to my recent posts here and here about newspaper stands, check out what I saw Sunday at New York’s La Guardia airport. While it does not hold a lot of stock, you could place your top selling daily at the bottom and the others in the pockets above. The stand is sturdy so there would be no problem jamming the pockets.
This stand is easily moved – allowing us to keep the newspaper pitch fresh to regulars.
Since it is slim it could work right at the counter, driving impulse purchases of newspapers. In fact, I could see two of these stands being useful in different locations in-store.
The days of the boat anchor newspaper stand newsagents were forced by publishers to use under threat of receiving a default notice are over thankfully. What we need now is an efficient newspaper stand that serves our businesses and our customers without giving up too much space and without one publisher dominating.
Getting the right stand could help some newsagents become more engaged with the newspaper category.
I like this stand I saw Sunday a lot. Unfortunately, the people I spoke with did not know the supplier – but I’m doing some research.
I am shocked at the news out of the US that Target stored over the counter purchases customer credit card details including name, number, expiry and CVV in their POS software – and that around 40 million records were stolen in a security breach experienced by the giant retailer.
My shock is that Target kept all this information about over the counter customers in their POS system. If I was a Target customer with my card data now in the hands of criminals I’d be angry at the retailer for poor data management.
I know that newsagency software from Tower Systems, the company I own, does not store this information for over the counter purchases. Customers purchasing at a newsagency using, for example, the Tyro integrated EFTPOS, the newsagency software does not have any visibility of or access to customer credit card details. This arms-length approach is far more secure than the approach taken by Target.
While newsagents can turn on a facility to collect and store credit card details separately, they would need to take this action – and most don’t. Even then, however, the data is encrypted and the CVV is not stored as added protection.
Even though newsagency software offers better security over card numbers than the POS used by target, what has happened to them and their customers this week is a reminder for us to be vigilant with customer data.
My newsagency software company Tower Systems on Monday shared information with newsagents on the instant asset write-off opportunity for small businesses that looks set to expire on January 1, 2014. Following my publishing of information advice was put out by another company that could be confusing.
The ATO website is clear on this issue. The opportunity applies to businesses with a turnover of $2 million or less. The maximum asset value that can be written off per purchase is $6,500. For example, you could not purchase $20,000 worth of assets in one transaction and seek an instant asset write off for $20,000 unless the items are identical.
My advice is that you get advice from your accountant to ensure that asset purchases prior to January 1, 2014 are structured appropriately for your situation.
Newsagent suppliers who want a healthy and valuable relationship with newsagents need to read this, all of it … especially if you want to grow the revenue your company achieves through newsagency businesses.
Our channel started with us as agents, being told what to do by everyone dealing with us. While that has changed, key traffic-generating suppliers – newspaper publishers, magazine publishers and distributors, transport operators, telcos and Tatts – continue to treat newsagents as agents. But worse than that, some of them don’t trust newsagents.
Tatts, newspaper publishers and magazine publishers and distributors have the worst track record of trust in and of newsagents – or should I say lack of trust. They all have stories to tell to justify their lack of trust. Here’s a story of trust in newsagents that’s worked for me.
My newsagency software company serves now close to 1,900 newsagents as active customers. That’s a pretty big pool in the channel so my experiences are more than those of a small group, they are genuinely representative.
In March 2009, after reading Jeff Jarvis’ excellent book, What Would Google Do?, I decided to make the process of selecting software update changes more transparent and user-engaged. Fast forward to today, more than four years on, and I am thrilled to share that newsagents actively suggest changes and vote on changes. I gave them far more control than usual for a software company and it’s worked.
Newsagents have benefited from software enhancements they want based on their business experience. The changes have helped drive efficiency. In the last four years the Tower market share in the newsagency channel has grown tremendously – so I have benefited too. Suppliers have benefited too with ideas being passed back, for example, for XchangeIT.
So when a newspaper publisher or magazine distributor or publisher says they can’t trust newsagents to set their own supply I say nonsense, I’d trust them.
The key I have found from my own experience is to create an interface newsagents can use, an interface that is transparent and engenders mutual trust. Provide this and they will use it and deliver more value for your businesses.
My team created Software Ideas at the Tower website and opened this for newsagents to use. Newsagents set the agenda. So much for them not having time or not engaging about business management matters.
By engaging in old-world processes that magazine distributors use today they are forcing the channel to be inefficient, they are forcing us to deliver an outcome that allows them to say we can’t be trusted to serve the needs of the publishers the distributors serve.
My experience has been that if you give newsagents the right tools and freedom and show trust, it will work for newsagents and for you. What I have experienced over the last four years is proof of that.
So I have to ask myself, those who do not engage in a more trust-centred relationship with newsagents – WHY? Maybe to do so would not serve their commercial needs.
If you are a magazine publisher who wants newsagents to set supply, DEMAND IT! You can trust newsagents to do right by your title because their need is aligned with yours. However, ensure that the process is right, transparent and, of itself, trustworthy.
I feel like the newsagency channel in on a merry-go-round sometimes given the regularity with which common problems are reported here and elsewhere. This will continue, sales will fall and old-school suppliers will be less important to us – unless they demonstrate trust in newsagents. We have to break the merry-go-round.
News Corp. is delaying the introduction of DTI Circulation – its national circulation and subscriptions system which is already in place across New South Wales, Victoria, Queensland, Tasmania and the Northern Territory. No reason has been given for the delay in SA. News has advised that the WA implementation will be undertaken later this month.
I’m speaking about how newsagency software well used can make your business more valuable as part of the workshop series at the GNS Market Fair in Brisbane today. I also touch on some themes from the Newsagency of the Future workshop. If you’re at the fair say g’day.
Magazines distributors and XchangeIT need to look at barriers put in place by some that block access to electronic invoices. Another newsagent recently was blocked from accessing electronic invoices because they decided they did not want to continue with software support coverage for their newsagency software. They did not want to pay the close to $3,000 a year fee.
When the date came at which their support coverage lapsed their software, for which they had paid many thousands of dollars, denied them access to the invoiced provided through XchangeIT. The harm to their business was considerable. They say they were not warned when they purchased the software that the annual support fee was mandatory. They say they were not told that they would be locked out of such a business-critical function.
Even though their current software meets current XchangeIT standards, they either pay what they consider to be an excessive fee to their software supplier – around $3,000 – or they live with not getting electronic invoices or they switch software to one of the newsagency software programs that do not lock you out if you don’t pay software support.
XchangeIT wants to ensure that newsagents have software that meets their standard. I understand and agree with this. To have a software company, not XchangeIT, block access to business-critical data when the software continues to meet XchangeIT standards is appalling. The magazine distributors and XchangeIT need to address this issue.
In the meantime, newsagents need to be aware before they purchase newsagency software. Ask these questions before you buy software:
While there are other questions newsagents should ask before they purchase any newsagency software, these two questions go to the heart of this issue – the blocking of a newsagent accessing an important function for any newsagency business.
Network Services is gearing up to increase split deliveries for more selected high volume titles. However, they will not provide split deliveries to newsagents identified in their XchangeIT data as servicing sub agents. Split deliveries do not work as desired where a newsagent is servicing sub agents.
Newsagents with sub agents need to ensure they are use their newsagency software property for their sub agent situation to be taken into account.
Every year I see newsagents bring in a stocktaker who does a great job counting and valuing stock but who adds nothing to the business operationally.
A stocktake is less about the value of the stock than about getting accurate data on which to base smarter business decisions.
Using newsagency software, newsagents can do the stocktake themselves. It will save time and money. Plus you will be able to:
The benefits are there for the taking – get started by using your newsagency software. I urge newsagents to talk to their software company about it. My software company is running rolling free training workshops for interested newsagents. Others are welcome to promote their training opportunities here too. We all need to help lift the efficiency of this channel.
Don’t do a manual stock take in 2013 it’s a wasted investment.
Malware attacks affecting newsagency businesses through their computer systems is on the rise. In the last week several businesses have been harmed. It’s too late after you’ve be affected to ask what you should do to protect your business. Act now. Use a respected anti-virus program. Keep your protection up to date. The time being wasted helping newsagents who were not adequately protected is ridiculous.
My newsagency software company today launched a comprehensive training program for newsagents and newsagency employees. Made up of in excess of 120 professionally produced videos (more than 7 hours of peer reviewed training) this training is unique in that…
There is no other training resource in the newsagency channel like this.
This training will make newsagents and their employees more productive in their use of newsagency software. The businesses benefit, suppliers benefit and those working in a newsagency and undertaking the training benefit.
The people at The Newcastle Herald wrote to newsagents at the start of this week announcing a price change from next Monday. They didn’t tell the software companies though. The people who help newsagents with what is significant change were kept in the dark – left to find out by accident.
It’s frustrating that publishers often only think of themselves. Involving others could result in better handling of their product. It’s what partnership is about.
Commenters writing on my Do newsagencies have a future? post have been discussing average basket size with some publishing their number. Basket size can be measured in dollars or units. Good newsagency software reports this easily for you. There is a considerable difference in basket size, beyond the size and performance of the business, depending on what you include. For example, lotteries, transport tickets and other volume agency lines can skew the results. This is why I recommend not including these high volume low margin items in such analysis.
I check the basket numbers in my own newsagencies every couple of weeks as basket depth – units and value – are a key indicator in what I’d call the small steps strategy for successful newsagency management. These are a range of small steps, measurement points, on which to focus to build a healthier business.
The current channel average basked size is 1.43 items with an average basket value of $3.65.
Easy access to good data is the most common reason I see for newsagency success or failure. There are no excuses. You don’t need to be IT savvy. You don’t need a lot of time. It’s not about business size. All you need is a desire to be successful in your newsagency. Do you check your basket data regularly?
Click on the image to see a a larger version year on year comparison of basket size (dollars and units) as well as a comparison of average item value and total items. This is the final analysis in what’s called the Monthly Sales Comparison report – my favourite report
Okay I’m not a fan of the Russian Kaspersky virus protection software. I prefer and recommend AVG. Kaspersky users had a good reason to dislike their anti virus software vendor following web access outage for many following an update Monday this week. This automatic update, causing the web outage, is another example of damage that can be done to systems by automatic updates. Computer users could control what updates are applied and when.
Some newsagents reported that they have not received all of their electronic invoices form Gordon and Gotch for tomorrow. I alerted the company and their Head of IT has just advised that Gotch has re-sent DD2 files to newsagents who had the problem. They should be available now. This applies to all newsagents who had not received all their files regardless of computer system.
Earlier this week someone commented on a post on this blog that they had been blocked from getting XchangeIT invoices by their software company because they had decided to not take up software support coverage.
It frustrates me that a newsagency software would block a newsagent from accessing business-critical magazine invoice data.
The software company involved should not block access. XchangeIT should not allow it to happen.
If a newsagent has software that meets XchangeIT standards they ought to be able to load data from any external source. If they need support from their software company to address any issue and are not covered by support then, by all means, charge them. But to charge just to get the data – this is poor behaviour that reflects badly on all software companies.
Yes I am conflicted, I own Tower Systems. I’m lucky in that our market share of 1,800 newsagents positions us to not have to rely on pressuring newsagents by blocking XchangeIT access to those who do not maintain software support. But we created our position over many years.
Newsagents have enough challenges in their businesses. They should not be forced to pay for a software support service if they don’t want it.
Software companies should rely on their customer loving their software and their support enough to keep them in business.
One of the future benefits of a new XchangeIT platform pitched to newsagents around four years ago was computer-based reconciliation of magazine distributor statements. If my memory is correct this was pitched at the ANF conference in 2008.
For years, newsagents have told me this is something they want. I have supported it to XchangeIT on their behalf.
When asked at regular review meetings with the software companies established by XchangeIT earlier this year what they can do to add value to newsagents, my colleagues at Tower Systems have pushed for the implementation of computerised magazine distributor statement reconciliation. The time saving and business management benefits to newsagents would be considerable.
I was disappointed to discover recently that within XchangeIT the message of support for this initiative has become diluted or lost. Indeed, the report back through the XchangeIT business was that there was no appetite among the software companies or newsagents for the implementation of computerised statement reconciliation. Whoever put this position has ignored the consistent support for the initiative by me and Tower Systems on behalf of newsagents.
XchangeIT is a boon to magazine distributors and publishers, saving time and delivering access to data at no cost. I think it is essential it improves the benefits it delivers to newsagents.
Computerised reconciliation of statements could mean that newsagents who do not reconcile today can do so cost effectively and those who do reconcile today could save hours every month.
To make the process work, newsagents would need to report variations in supply (over and under) through their software. This would sure beat reporting it in any other way. The result would be more accurate business data, time saved and greater certainty around statement reconciliation and amount owed.
It’s an enhancement that should / could be delivered without cost to newsagents.
So, newsagents, what do you think? Do you support the idea of computerised account reconciliation? Please post your comments here…
With some newsagency software programs having offered the ability to provide sales data to Hallmark and John Sands for years, it is good to see both parties making use of this to drive better value from the newsagent / supplier relationship.
Newsagents who ensure they have accurate business performance data and who share this automatically with their suppliers can be certain of receiving amore finely tuned and appropriate supply of products.
The automatic flow of sales data sits at the heart of just in time supply, enabling newsagents to better manage their inventory investment.
Now more than ever there is real value for newsagents in using technology to drive supplier relationships.
Earlier this year I purchased the NewsPOS newsagency software business. While some newsagents have switched from NewsPOS to Tower Systems, around 70% continue to use NewsPOS and the team in my software company supports these NewsPOS users.
I mention this because someone is putting it out there that NewsPOS closed. It didn’t. It was acquired and for NewsPOS users it’s business as usual.
The rumours in this channel are frustrating.
