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Newsagent suppliers

Here are 7 things suppliers need to do to drive purchases by retailers:

We have many suppliers to newsagents and other small business retailers who are living in the dark in terms of how they transact with retailers.

Here are 7 things I think suppliers need to do to drive purchases by retailers:

  1. Make ordering easy, paperless. Let retailers order online from an easy to navigate website, showing stock on hand for immediate delivery and expected delivery date for future deliveries.
  2. Email a copy of the order.
  3. Provide access to a library of product photos organised by product code and with an easy download option.
  4. Provide an electronic invoice when goods ship.
  5. Make handling queries easy, and fast.
  6. Offer access to all product pitches as soon as they are available – for access from anywhere. Having to wait for a rep to do a presentation in-store doesn’t respect retailer time.
  7. Offer access to anonymised comparative sales data so a retailer can compare their performance for a brand or product with similar sized and situated retailers.

There will be some suppliers who will say this is too complex. The thing is, investing in these steps will, I am sure, boost sales and improve retailer / supplier stickiness.

How we all do business has changed. It is a waste of time having to fill in a paper order form, scan this and email it to a supplier. It is a waste of time having to meet a rep to discuss something face to face that I could scan in minutes at a time of my choosing. It gets all the data in the right place at the right time if I can transact online.

I get the interest from suppliers in personal contact. This is where good sales reps make good money for the companies for which they work. The reps are not working for retailers.

Through Faire and several other online platforms plenty of us are having terrific sales experiences with new suppliers. Old-school suppliers are being left behind.

How we all do business has changed fundamentally. Keep up. Do better even.

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Newsagent suppliers

Advice for local card makers seeking to place their cards in retail shops

I have noticed an increase over the last six months in approaches by local card makers seeking to get their cards placed in the shop. It’s a challenge with complexities.

  • Some local card makers have not considered the margin retailers need when pricing their cards for sale from their own website or at local markets.
  • Some have not thought though how to display the product.
  • Some have never considered whether they would accept product for return.
  • Some have not researched what sells and what does not sell.
  • Some have made poor choices on card stock.

Cards are premium margin products in our businesses. To deliver the value we need, they need to sell. At minimum, we need to sell at least 12 of each card each year to break even on space, labour and capital investment cost. This is the benchmark: a pocket turn of 2 times a year, or in the case of these indie maker cards, a turn of 12 of a design in a year. And that is at a minimum.

While many of us want to support local card makers, too many of these makers have not through their go-to market strategy in a way that connects with potential retail partners.

When we say no, some take it personally about their designs, while this is not the case. It makes for a complex conversation.

While I am all for supporting local designers and makers, the arrangement needs to be commercially viable for both sides and have a plan behind it that shows the relationship to be sustainable.  There is one card maker I supported years ago who did not have replacement stock when I needed. It took three months.

Here are some things we have done to make it easier for the business to support local card designers:

  • We have a good space in the shop dedicated to displaying their product full face.
  • We have a stand for the counter that pitches 2 or 3 designs, for impulse engagement.
  • We show customers the local connection.
  • We use social media.
  • We share performance data so they can consider this when developing product.

While there are complexities with local card markers, there are some out there that get it and work to ensure the relationship is mutually viable.

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Newsagency management

Gift related suppliers are concerned about a trend

Gift suppliers have mentioned a trend that concerns them. It emerged around just over a year ago. Whereas in the past they would win a customer and receive follow-up orders from almost all of them, over the last fourteen months less than a third reorder.

Most of the suppliers who have mentioned this have good products, sought-after. A few are brand names.

A common reason by the retailer for not reordering is that they want change. This is despite the products performing well. I can’t work out why a retailer would ditch a range after selling through the first order.

In a couple of instances it was because an agent for a supplier placed their products in a nearby retailer soon after the first retailer ordered and before the products had had a chance to show how they would perform. I’d be unlikely to reorder in that situation.

There are legitimate reasons too. For example, a business transitioning to a higher average price point in gifts, or a business reallocating shop space to a whole new category they anticipate will perform even better. these are legitimate decisions for retailers to make.

One supplier is so frustrated by the trend that they have amped up their direct-to-consumer activities. I know a couple of others considering this.

I think this is an interesting topic for exploration between suppliers directly impacted by the trend and retailers, preferable retainers who have stocked those suppliers.

Looking at sellout data for a range of retailers this year, it appears that if product out of stock situations did not exist, retail turnover in those shops would be up between 5% and 10% based on previous sales analysis for that time of the year.

While there is an appeal for change in retail to show the business as evolving, there is the practical aspect of the evidence, data, that indicate certain sales if you have the stock. There is good reporting to demonstrate a trend for a product, so you can know when to cut it.

Suppliers do need to understand where they city in the retail business lifecycle. For example, not so long-ago newsagents focussed on gifts priced at $20 or thereabouts. Today, most engaged newsagents focus on gifts at $100, $200 and even more. While the lower priced gifts have a place, it is not the dominate place they occupied a few years ago.

As I noted, I think these are all things we ought to discuss.

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Newsagency management

Has the beloved Ty brand lost its way in Australia?

For years, Ty products were hero products in toy shops and newsagents in Australia. Built around collecting Ty Beanie Boos and other products, sales were excellent and shoppers were loyal.

At the end of 2022 that changed with the decision by Ty in the US to make different arrangements for distribution in many international markets, including Australia.

While the products are the same adorable and loved products, from what I can tell they now appear to be targeting impulse shoppers. There was no product on offer for Valentine’s Day 2024, despite it being available overseas. I’ve been told that nothing is planned for Australia for Easter 2024 yet I have seen the Easter 2024 product overseas. I hope these products do make it to Australia.

Gone are opportunities offered retailers like us to nurture collector relationships. The focus does appear to be on pitching Beanie Boos as a low-cost impulse line. And while the company has its reasons for this, it appears the successful approach of us and other retailers serving collectors is of no interest.

Here’s an announcement they made on LinkedIn a couple of months ago:

Last year, Ty Australia set a maximum retail price at $1 lower than what had been traditional for Beanie Boos. They said sales would increase as a result. That has not been my experience. It’s unfortunate there was no consultation prior to their pricing decision, no consideration of past experience that showed it did not boost sales and that other tactics were far more successful at boosting sales.

Time change, trends come and go, I understand that. What has happened here is not that. Collector interest was as strong as ever. The decline has been driven by the company for reasons only it understands.

Communication from Ty Australia has been non-existent. This has not been helped by a succession of senior staffing changes. I’m not sure why people with good experience in the field are not staying with the company that long.

Maybe what is happening with Ty in Australia is the same as we see happening with some other overseas suppliers: disconnecting with previously successful local retailers in pursuit of change for reasons not explained. It will be interesting to see how that plays out for them. In the meantime, I’ve found other uses for the freed space and new customers to attract as a result.

We had an excellent and profitable run with Beanie Boos and other Ty products in my shops for many years, and maybe we will at some point in the future. For now, though, the company is more interested elsewhere. Good luck to them.

Has Ty lost its way in Australia? Time will tell.

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Newsagent suppliers

The gift trade show situation needs to be resolved

The Sydney gift fair this past weekend and into this week has ranged from awesome to dreadful depending on the person sharing their opinion.

That it is three different shows over two separated locations is a key frustration, with no obvious reason for a supplier being at Homebush versus the city.

For those with limited time, getting to the three events is challenging.

The geographic split diminishes the value of the show I think.

The other issue for me, from a supplier perspective, is a bigger geographic split. I’d prefer to see gift fairs concentrated to one city, and held twice a year, like in most other countries.

Gift fairs in Melbourne and Sydney add unnecessary cost to suppliers, meaning retailer buy prices are not as low as they might otherwise be.

So, for me, I’d like 2 fairs a year in one city, Melbourne or Sydney. I don’t care which. And, in whichever city, the fair to be in one location, not many kms apart.

Suppliers need a more efficient route to selling to retailers. The current approach benefits the trade show companies and their suppliers of furniture, shell schemes, lighting etc, costing the suppliers, and, ultimately, retailers too much.

The meson gift fairs in Australia really does ultimately hurt local retailers. Talk to suppliers in New Zealand, The United States and the United Kingdom. They all love 2 shows a year in fixed locations.

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Newsagent suppliers

Advice for suppliers pitching to local small business retailers

Do you have any idea how many pitches a retailer gets from suppliers every day?

Many, too many, every day. And, what makes it worse is that there is a sameness to the pitches – over written, loaded with claims and rarely tuned to my local business needs. Most emails or calls or visits come from a place of selfishness, based on what they need. A better approach would be them thinking first how can they help, how can they add value to your business without you having to commit?

There is too much lazy communication. And, I say this as a retailer and a supplier to retailers. I have made the mistake of sending emails and letters that were selfish. When I switched my approach to add value, or at least try and genuinely add value, sales surged. It built trust. Giving away knowledge that any retailer could use without having to spend anything is key to this.

So, what matters to retailers, what does a supplier need to do to get their attention?

In my opinion – I say that deliberately since every retailer will have their own views on this – here is how a supplier can get my attention:

  • Be clear and efficient in communication. Don’t over write, don’t wrap your pitch in fluff.
  • Be factual. Give me data, which can be fact-checked, that shows the value of the pitch to my business. For example, what Google search data is there to indicate shopper interest in the products or the product categories?
  • Be helpful. Explain what you provide beyond inventory that could be helpful: images, social media collateral, product descriptions, electronic invoices.
  • Be focussed. Sending me a link to your catalogue is hilarious. Sure, I have an hour to click your link, probably apply for a password if you are really bad at your job, and trawl through pagers looking for what I am not sure. The fewer keystrokes I have to click to engage with you the better.
  • Have stock. Suppliers selling in advance of having stock only to find not everything arrives is a waste of our time.

I am in business to sell product as this is what enables me to pay rent, wages, overheads and myself. Anything that you send my or pitch to me that does not obviously support my needs is a waste of my time.

Thinking about this, sell price, margin and stock turn are all factors. I am keen for products that leverage all three. A supplier pitching a product at a discount has me wary, regardless of the extent of the discount. Cheap product is useless unless it sells, and, ideally, faster than usual.

For too long, our channel has been pitched to through old-school approaches. Covid, thankfully, has shown that we can thrive without some of these. The future is ahead of us, not back in those past ways. Smart suppliers have learned through Covid, they have found ways to pitch efficiently and effectively, to cut through and deliver to retailers what retailers want / need. Fewer rep visits. fewer cold calls. Fewer bland emails.

When I am buying today I preference:

  • Genuinely Australian made.
  • Immediately available.
  • Free samples for products that sell more easily if there are samples for customers.
  • Ranges that tell a story.
  • Ranges I can leverage to find new shoppers.

Here are some other points related to this discussion about supplier engagement with local retailers …

You are not entitled.

I appreciate that may came off as offensive. That’s not my intent. But, it is true. We owe you nothing, regardless of your connection to our business. Any supplier is only as valuable as their last product supply.

No thanks.

That’s the best default response to every supplier pitch. Start with no. make them work for it. make them work harder to get their inventory into your shop.

Start with no and encourage them to make a business case.

You don’t have an appointment.

That alone should have you showing any drop-in the door. The moment you agree to meet with a drop-in rep weakens your position. The more we make the point that drop-ins are not welcome the better they will treat us.

A coffee, a beer or lunch are irrelevant to what you should stock.

There are plenty of old-school suppliers who think buying you a coffee or a beer or more is the best way to get you to bu from them.  I’m in business for business reasons, not social reasons. Let’s stay focussed on business, and is good social times flow, great – but let’s not lead with that.

Buying space.

Some suppliers seek to guarantee engagement by paying for shelf space or fixtures. Too often, this does not serve the retailer well. While a supplier funding a nice looking fixture or covering the lease cost of some space may feel like a good move for cash flow, it is only a good move if the inventory they please there turns well, better than what you could do yourself. This type of funding comes at a cost to the business.

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Ethics

Is there a quality problem with products made in China at the moment?

Maybe it’s just me but it feels as if the quality of some products coming out of China at the moment is less than it was a couple of years. I say this based on the number of credits sought when checking new products coming it.

Of particular concern is seasonal products for which there is no replacement stock, leaving a hole to be filled. For example, licenced Christmas ornaments that look dirty or damaged and that will certainly not sell.

This is a problem suppliers need to address. Usually, they have quality control agents working with factory in China, checking products as they come off the production line. For some suppliers, it’s as if those quality control agents are not working as they were.

We have changed our product checking process to ensure we catch problematic product before it hits the shop floor or the online sales fulfilment desk. While you could argue every product should have been checked previously – with shrink wrapped product this can be time-consuming and not something a shopper wants if they are buying to collect and keep unopened for years.

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Newsagent suppliers

The double standards of some suppliers

We have suppliers in our channel who steadfastly ‘territory protect’ denying nearby retailers from accessing their products while they themselves, the suppliers, run a direct to consumer website that could sell to anyone, anywhere.

I’m all for ending territory protection. We are in a free market after all. Likewise, I am all for competing with anyone online, too. I say this as there is one supplier that required physical retailers to not offer products online.

All these restrictions are a real turn off dealing with some suppliers.

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Newsagent suppliers

Too many newsagency suppliers are late communicating about inventory delays

Almost daily recently I have heard from at least one newsagent about a supplier advising of delays to stock delivery. The complaints are commonly not about the delay itself but about the delay in sharing news of the delay.

Suppliers appear to think that not telling retailers of a delay protects their position of forward orders.l It does not do that. It lets newsagents know to be skeptical in ordering from that supplier again.

This time of the year, supply certainty is key. Many retail business settings rely on it: labour, space allocation, marketing, and more. When stock does not turn up, all of those long-planned settings are compromised.

I heard of one supplier this week who was chased by plenty of retailers about stock that was due in store a month ago. They finally responded by dismissing the queries with don’t you know we’re in a pandemic. What a silly response. Retailers see through it because so many suppliers have made appropriate changes to ensure inventory supply. Some have changed source country. Plenty have brought production to Australia.

The big issue here is poor communication from suppliers. That is what I will judge them for. I want to deal with suppliers that understand that good communication is one of the most important assets in any relationship.

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Newsagency management

It’s fair-weather friends season

Some suppliers who have resisted opening accounts with newsagents without looking at the actual businesses applying now welcome retailers from our channel because of our good Covid story.

That we have been open throughout and thrived has shown them the value of retail businesses in our channel.

Suppliers who realised this last year and responded are not the ones I am writing about today. rather, I am writing about suppliers responding to the latest NSW / ACT / VIC lockdowns.

I am aware of several who have steadfastly resisted newsagents who now welcome them as customers. One is actively pushing into the channel, setting up some difficult conversations with existing account retailers when they do get to reopen. They have overcome a prejudice they help for years because they have a warehouse of stock they need to move and our channel is just about the only game in town for them. While it’;s good to see, I do wonder if they really have overcome their prejudice.

I am sceptical of some suppliers opening to our channel. If I was to take any of them on, I’d want certainty that into the future they will not restrict the product categories available to me. If they balk at that question I’d wonder about the long-term prospects for the relationship.

While there is considerable diversity among the retail businesses in our channel, it is, overall, strong, with a bright future. This is in part because of how much many of us have evolved from the shingle.

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Newsagency challenges

The nonsense of territory protection by suppliers

While in the past, territory protection respected retailers who invested with a supplier, today, with online as it is and the extent to which it is growing, territory protection does not make sense.

In one regional town, a shop was denied access to products from a sought-after supplier because another shop nearby had a range of products from them. They charged over the odds for the products. Shoppers found the same products online for a lower price. The local retailer found out and wanted the supplier to stop selling to any business that sold online. That revealed to the supplier that their local retailer was charging more than they would prefer. The supplier had previously rejected selling to another business in the town, to protect the original stockist.

Suppliers need to realise that territory protection is not what it used to be, thanks to online.

In my view, it is time to move on, time to open up and let the best retailer win. It is time to end territory protection.

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Newsagent suppliers

2021 Toy Fair to be 100% digital

The Melbourne Toy Fair slated for March 2021, usually a huge event, will be 100% digital next year. It’s good to see this announcement made early, so folks can plan.

This trade show has historically been critical for setting up the year for suppliers, harvesting plenty of forward orders. It has been a perfect opportunity for retailers to learn from first-hand contact about many new products.

This news about the 2021 Toy Fair, coupled with news of redundancies in other areas of trade show world, 2021 looks like a lean year for in person trade show events.

The suppliers who have pivoted to digital trade events and interactive digital catalogues are best positioned to benefit from the uncertainty of face to face trade shows.

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Newsagent suppliers

What is it with big businesses and communication?

On top of corona challenges, small business newsagents are confronted by channel-specific challenges right now because News Corp., Tabcorp, Ovato and others are letting them down on basic business communication.

Ovato made magazine distribution changes in NSW/ACT and even this morning there are newsagents unsure of when magazines will arrive and where they will be delivered.

News Corp. closed papers and changed distribution arrangements and there are Queensland newsagents a week on still not getting papers until close to lunchtime.

Big supplier businesses need to do better if they are genuinely interested in small business retailer business. I suspect their major customers, like the supermarkets, will have received better and more regular communication.

If their comms is anything to go by, they don’t value small business newsagent business in the medium to long term. Maybe that is the message.

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Ethics

Can newsagents sell $500.00 gifts? Yes!

Oh, no, that not a newsagent line. Any supplier rep saying that is clueless about what could sell in a newsagency.

More and more newsagents are playing outside of what has been traditional for the channel. Suppliers need to stop editing what they pitch to retailers in the newsagency channel.

This photo is one of the displays in one of my newsagencies. It represents two artist made higher end ceramic ranges that would look at home in any boutique gift or homewares shop … just as they look at home in my shop.

Now more than ever, with suppliers challenged at hw they reach retailers and especially possible new accounts, they need to be open to what could be possible rather than managing to a low bar they have set for themselves.

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newsagency of the future

Worst newsagency supplier of 2018: Gordon and Gotch

I nominate magazine distributor Gordon and Gotch as the worst newsagent supplier of 2018. I do this on the basis of:

  1. A broken magazine supply model that results in failure every month with between 30% and 50% of what is sent as not selling. This wastes newsagent capital, time and space. Gotch people will say this is the fault of the publishers who control print runs. I don’t care. Gotch is the supplier to newsagents.
  2. Poor communication.
  3. Poor customer service. Often non existent. Newsagents have to spend too much time using inefficient systems at Gotch – phone and email – to get simple queries answered.
  4. Poor tech infrastructure that makes it hard for newsagents to proactively trade on new titles. I am tired of excuses by Gotch representatives on this.
  5. Disinterest. The impression newsagents tell me have is that when it comes to Gotch, newsagents feel they don’t care.
  6. Poor commercial value to a newsagency business. The poor margin, couples with a broken supply model and a high labour cost for newsagents on dealing with queries drives this poor value.

Feel free to nominate any other company or agree or disagree with my post.

FOOTNOTE: A Jan 1, 2019 reflection: Why am I so hard on Gotch? Because they have had decades to get this right. They are a cornerstone supplier in a cornerstone category. Newsagents used to be their exclusive customers for print media products. Now, ur channel is one of several. While we have more competition, Gotch has less, and we are the worst off for it.

The position of Gotch in the channel, their size, their market dominance mean we ought expect more from them. In 2018, we got less. This is leading newsagents to exit magazines.

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magazine distribution

Melbourne gift fair tips for retailers

The Melbourne gift fair kicks off today. Here are my tips for retailers shopping the fair. Others are welcome to add theirs.

  1. Have a budget. Stay within it.
  2. Have a buying plan, to ensure you are buying to the goals of the business.
  3. Remember that you are not your customer.
  4. Know that your buying is the first step to attracting new traffic to your business.
  5. Write on each order your delivery timing requirements.
  6. Write on each order any promises made, so the order fully documents your expectation. These could include exclusive territory, returns etc.
  7. Note on the order whether you accept backorders.
  8. Note on the order by which time the order is cancelled if they are unable to supply.
  9. Take a copy of every order placed. Use your phone camera.
  10. Ensure you know who the customer is for the products in question.
  11. Do not pay a deposit.
  12. Have rest breaks to ensure you are fresh and alert when shopping.

If you are going to the fair, have a great time!

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Newsagent suppliers

Sydney gift fair struggles to regain momentum

Plenty of suppliers are yet to decide if they will invest in the Sydney gift fair in September or any other Sydney gift fair following poor fairs and growth from the Melbourne fair in August.

While the temporary location of Sydney away from Darling Harbour during reconstruction could be a factor, folks I have spoken with who have experienced gift fairs overseas in Birmingham (UK) and Atlanta (US), say they like the idea of a bigger single city fair.

I see value for retailers and suppliers in Melbourne growing as the main gift fair to attend in the year. I think such a move would sever everyone, reduce costs and drive competition. While I expect there will continue to be other fairs, I suspect they will be less important, probably more regional, even more local supplier focussed. This is what I see in the US at regional gift fairs.

The Sydney / Melbourne ‘rivalry’ re gift fair location has been a topic this week because of agitation fro the organisers of the September Sydney event chasing last minute commitment for the event next month. I am surprised at some who have said no.

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Newsagency management

Five reasons why newspapers work better in the back of the newsagency

I heard from a newsagent who was “told off” for moving newspapers away from near the entrance to the business to the rear of the business.

The newsagent made the move based on the return on floor space being achieved and based on the trajectory. I am aware of the numbers. The move was the right one in my opinion.

The newspaper publisher rep was having none of the logic. I am told there was a threat to pull newspapers from the business.

I am not aware of any decline in newspaper sales in a business that has moved newspapers from the front of the business to the rear. Without such evidence, any claim or demand from a newspaper publisher rep is without any evidentiary basis.

Here are five reasons why moving newspapers to the back of the shop can be a good move:

  1. Newspaper readers have more room to read. This provides better customer service.
  2. There is more space for the volume of papers on busy days. Better space management.
  3. Store traffic flow is better, less cluttered at the front during busy newspaper times. This benefits all shoppers,
  4. More money is made by better use of the old newspaper space and this gives the business better overall prospects. Retail 101.
  5. The newsagent is thinking like a retailer and that is to be cheered. Cheer!!!

Newspaper publishers have no rights over where papers are in a business. I say this even if some have a contract with requirements. Good luck finding a court to uphold a requirement on a small business retailer that commercially harms the business.

Newspapers fit well at the back of the shop. Sales are not affected. Sure one or two complain – tell them the exercise would be good for them.

Newspapers play an important role in newsagencies. For this to continue we need to leverage ways that reduce operating costs – like publishers themselves have done in recent years in the running of their businesses. The best way for us to do this is to stop these low margin products from us making what we could make from front of store high value retail space.

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Management tip

What to do if a supplier uses the threat of legal action to get you to do what they want

I heard yesterday of a long standing newsagent supplier threatening a newsagent with legal action if they sought to break the relationship with the supplier.

The threat was made face to face, in the back of the shop, without witnesses, by the managing director of the supplier.

The newsagent was left shaking and fearful. They decided to continue in a relationship with the supplier because of the threat of legal action. They felt that was best for the business, to let the contract they have run its course, and have as little contact with the supplier as possible.

If what I have been told is true, the threat is something that could be reported to the police or at least challenged in court. However, I suspect the person making the threat knows the newsagent would not do this, I suspect they would know the newsagent does not have the resources to fight such a fight.

The newsagent knew the meeting was happening., They knew it would not be pleasant. My advice to them on hearing the story after the meeting was that they should have recorded the meeting for their own records and that they should have had someone else there as a witness.

If a supplier threatens you with legal action to force you to stay with them or to do things that you know will not help your business, consider calling their bluff. It could be that the last thing they want is their business put under the scrutiny of a court, where the would have to defend how they deal with you, what they provide you and explain the value of this for your business.

I understand the fear of court action. I suspect that is what this specific supplier preys on. I suspect they make the threats I am told they make because they know no newsagent will call their bluff and say okay, take us to court – get out of my office and take us to court.

I know of another supplier to newsagents who made a similar threat of legal action, but with less intimidation than the first story. In this second situation, the newsagent said, okay, if you think you have a case, take us to court. The supplier did not take them to court. I suspect the directors decided against this because of the possible can of worms such court action would have exposed about their business.

Bullying does not only happen in the school yard. Sadly, it happens in business, particularly in situations on inequity such as the two stories I have shared here.

Shame on any party threatening legal action against a newsagent to get the newsagent to stay in a relationship that is not commercially appropriate or valuable too their business.

If you have a story of such legal threat, consider calling phew bluff and consider sharing the story, discretely, with fellow newsagents. Tell the truth of what happened and what it caused you to do.

If nothing is done, these bullies continue to get away with it.

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Ethics

Follow the money: Invest for growth in your newsagency

One of the challenges facing legacy product suppliers to the newsagency channel is the success many of us are having with new product suppliers.

It is only natural that newsagents, like other business people, prefer to invest in traffic, GP and, ultimately, bottom line P&L growth.

Therefore, newsagents are more likely to invest in products and infrastructure supporting products that fit the growth story. It is also why newsagents are less likely to invest in legacy products and the requirements of legacy product suppliers. It is why legacy suppliers struggle to get attention of newsagents.

The extent of transition in the newsagency channel is encouraging. Newsagents embracing new categories and through these new suppliers. It is leading to shop layout and fixture changes as well as technology changes as newsagents pitch new products and categories through their technology in ways that help attract new shoppers.

Our legacy suppliers who historically have relied on bully tactics and being required products are coming, slowly, to realise the new world, that their products are not as needed, that the expensive and anti-competitive processes are not appreciated by newsagents. Well, some at least. There are others who continue their ignorant bullying ways.

We are in a golden era of change in our channel. There are winners and losers. Market forces are at work, and this is a good thing.

When contemplating a request from any supplier, consider the new traffic, GP growth and bottom line benefits. If the request does not improve these then maybe ignore it. The suppliers of legacy products who handcuff you to anti-competitive processes may one day get the message.

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Management tip

Suppliers need to be better at handling out of stocks

Suppliers to retailers of everyday lines – you know, the lines they are known for and that you purchase from them on a regular basis – have an obligation to ensure this items are always in stock.

Too often now I hear stories from newsagents of core suppliers not maintaining adequate stock levels of these everyday items.

The consequences of these out of stock situations can be serious for newsagents and the suppliers.

Newsagents with a gap on the shelves can look elsewhere – to another supplier or even to another product to fill the space. I know of one instance where a supplier out of stock caused the newsagent to look more carefully at return on inventory investment and return on space and found the product to be borderline successful based on the evidence. They quit the category and the supplier and introduced a new category … and that was the start o=f increased success for the business.

Newsagents are not shingle loyal today, nor should they be in today’s marketplace. This puts suppliers at greater risk of losing business if they are out of stock.

I am not naming suppliers as they know who they are. The time for their excuses are gone. They need to fix their inventory gaps or budget for more sales decline.

My message to suppliers who have more and more out of stock – get your situation sorted out or you will lose more business.

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Newsagency management

Don’t do as I do, do as I say

News Corp. asks, some say pressures, newsagents to give prime position in newsagencies for newspapers. Check out how the company promotes its print product on their office in the Adelaide CBD … they don’t promote print and have not for more than a year. I took this photo yesterday morning.

IMG_1060

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Newsagent suppliers
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