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Newspaper marketing

Retail newsagency marketing tip: make shopper traffic work for you

Most newsagencies have excellent foot traffic. Challenges we read about in the comments on this blog and at newsagent meetings are not related to traffic. Margin is what many complain about. Slim margin on lottery, circulation, mobile phone and some other products is what I hear complained about often.

The question we have to ask ourselves is are we leveraging our excellent current traffic to build a better future margin dollars story?

Too often we look at a newspaper sale or a magazine sale or a lottery ticket sale in isolation.

What if the newspaper sale today led to a greeting card sale tomorrow? The newspaper sale becomes more valuable, it delivers to us better margin dollars than the newspaper sale itself. This is what our competitors are doing. While they chase today’s sale, manyn of our competitors work hard to get that person back to bring more value to the business.

What are you doing, consistently, to bring newspaper, magazine, lottery, mobile phone recharge, transport ticket and other slim margin business back into your shop to purchase other products? Consistency is key here – having a structured approach that every team member engages in.

Here are some ways we can do this: with loyalty cards like the magazine club card or the greeting card loyalty card or a business wide points based loyalty program or coupons that are dated to get people back within a certain time. Whatever you go for you need to ensure it is pitched across the counter regularly to invite and entice shoppers back sooner. The indirect message is that you are asking for their loyalty.

If you do nothing to entice shoppers back then you will not achieve the maximum value from the traffic you have today.

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marketing tip

Thanks for Taylor Square Newsagency a lesson on Word of Mouth in the era of Twitter

Kudos to John and Mark Piggott and the team at Taylor Square Newsagency on Oxford Street in Sydney for being open at 10am. Check out the tweet from a happy crepe paper shopper.

Good stuff.  The tweet is an excellent example of word of mouth today – it reaches more people faster. All of Kitya’s 575 followers received this tweet.

Newsagents mentioned in this way on Twitter need to respond on the platform and appreciate the mention.  BTW, Taylor Square Newsagency has the best magazine range in Australia. This and their long opening hours are their point of difference.

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Newspaper marketing

The changing model of free newspapers

heraldsunstand.jpgMy local Fitness First gym has just installed a display unit offering free copies of the Herald Sun newspaper.  It has replaced a unit which offered free copies of The Age which had been in place in the same location for the last four months.

It seems to me that there has been a significant increase in availability of free newspapers: at gyms, sporting events, coffee shops, outdoor events and even supermarkets.

Until recently I thought that free newspapers would be the local ‘community’ newspaper and commuter newspapers like mX, a slim and fluffy ‘news’ paper which is distributed in several Australian capital cities Monday through Friday.  What we now regularly see goes beyond the mX model.  More and more we are seeing free copies of the main game, the regular newspaper available which shoppers used to pay for.  Plus we are seeing weekend paid for newspaper, free.

While publishers may say that these giveaways are designed to promote the titles through sampling, I don’t see this.  A four month long sample of The Age at Fitness First gyms is a long sample.

I am concerned that the publishers are inching closer to a completely free model.  If this is not the case then why are they educating shoppers to not pay for their newspaper?  Why are they engaging in campaigns which invite shoppers to not get their daily newspaper from their newsagency?

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newspaper home delivery

Attention Australian newspaper publishers – this is how to run a consumer promotion

dailymail.JPGUK shoppers who purchase The Mail today (Sunday) and The Daily Mail next Saturday are to be rewarded with a free £5 Tesco (supermarket) shopping voucher.

The promotion is all about driving sales of the newspaper, including retail sales.  All retailers of newspapers benefit.  There is no long term commitment, no subscription offer shifting the retail customer to cheap home delivery.

The value of rewards increases as loyalty increases.  or example, shoppers buying seven out of eight consecutive Saturday and Sunday newspapers get to choose another £5 voucher, this time from The Body Shop, Boots (pharmacy) WH Smith (newsagent chain), BP and more.

the process of registering and redeeming is easy, it is all handled through a the newspaper’s website.

While I am sure that there are deficiencies in the rewards program which I cannot see, it looks like a far more considered and respectful offer than the recent Herald Sun promotion with Woolworths or the one they will run shortly with Bunnings or the perpetual free copies of The Age at Fitness First outlets.

The campaign by The Daily Mail reads like a back to basics loyalty program.  It’s simple, honest and quick to deliver rewards.  I have pitched this to News Limited in the past without success. I guess it is more valuable to them to reward big advertisers than to respect all of their retail channels.

You can read more about The Daily Mail promotion here at their website.

Australian publishers have invested too much in driving home delivery subscriptions and not enough in driving over the counter sales.  If the publishers had to carry a fair cost of fulfilling home delivery then they would not have pushed subscription growth as they have.

As newspaper sales are further disrupted by mobile digital devices, Australian publishers would be well advised to look carefully at engaging in smart promotional campaigns in association with retail newsagents, their largest, most important and most valuable retail network.

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Newspaper marketing

Fairfax election day newspaper offer

fairfax-election-offer.jpgClick on the image to see a copy of a fax sent to a school by Fairfax inviting them to sell The Sydney Morning Herald on election day last month as a fundraiser. While I am not sure, I expect that other schools which were polling places received similar faxes.

The local newsagent was not party to the offer and only found it about it from the school.  There was no plan regarding compensation for sales.  As they note shows, they were expected to pick up unsold stock.

The more newspaper publishers promote sales outside the newsagency channel the greater the opportunity newsagencies fade as the go to retail outlet for newspapers. While the election day is a one off offer, I would have preferred to see Fairfax work with newsagents on a joint election day promotion.

As a retail newsagent I would like proactive engagement from publishers and fair business rewards for achieving incremental business. The current approach offers no incentive to grow newspaper sales.  They appear to be investing little attention into driving newsagency over the counter sales.

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Newspaper marketing

The travelling newsagent conference

nx_conference.jpgnewsXpress has announced a one day travelling newsagent conference to be held in Melbourne, Sydney, Brisbane and Perth next month.  The conference is open to all newsagents regardless of marketing group affiliation.

Six expert speakers will present on topics of vital importance to newsagents.  Each session will share practical ideas which can be taken and used right away in any size newsagency without needing to spend money on changes.

The goal of the one day conference is provide genuine value advice and insight to help build stronger and more valuable newsagencies.

The one day conference starts at 10am and runs to 4pm.  There will be a trade show representing a small selection of suppliers with special deals for all newsagents.  Lunch and other refreshments will also be provided.  Participation costs just $50.00.

This one day conference format was created understanding that it was challenging for many newsagents to leave their businesses for more than a day at a time let alone travel interstate to a conference.

Click here for a one page brochure and registration form.  Click here to book online.

Disclosure: I am a Director of newsXpress.

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Newsagency opportunities

Frustrating McDonalds promotion

The Herald Sun McDonalds promotion is frustrating.  While I am aware of it, a distribution agent handling one of my stores had not made arrangements so our Sunday team were left scrambling to sort out what to do.  My understanding that that there is to be a settling up of collection coupons at the end of the promotion. My view is that if I am giving away a free newspaper today then I ought to have the full cover price credit showing on the account this week.

As I have noted here before, I think this McDonalds promotion does no favours to the newsagency channel. Publishers should work harder  with us on building newspaper sales in our businesses.

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Newspaper marketing

How much do newsagents spend on marketing?

I am curious about how much newsagents spend marketing their retail businesses outside their four walls on: advertising (newspaper, TV, outdoor), direct mail (catalogues), sponsorships (sporting and community groups) and in other promotions designed to promote the business outside the business.

I have always used 2% of revenue as a guide to marketing spend. By revenue I mean commission from lotteries, transport tickets, electronic voucher and agency lines plus sales for everything else – newspapers, magazines, stationery, books, calendars, diaries, ink etc.

Two newsagents I was talking with this week did not have a budget so we worked out the number. In calendar 2009 they spent under half of one percent of revenue on marketing. They were shocked when I suggested they quadruple this. They felt that being a newsagent should bring people in and that newsagent suppliers should do more to advertise newsagency businesses.

While I can understand the view that newsagents suppliers should promote the channel from a historical perspective, it is not appropriate today. Most of what we carry is in so many other retail channels that it is not appropriate to expect a supplier to promote us.

We need to market our businesses to bring people to us. This is best done in our local communities. All of what we spend in my newsagencies is designed to get people living and working near us to visit for seasonal, category and sale opportunities we promote.

We use a mix of direct mail, email and print advertising consistently throughout the year. This investment does bring in new customers. It also guides existing customers to spend more. The investment pays off.

While it is expensive to find a new customer, this is vital given the competition from other channels attracting shoppers to what we sell.

So, what do you spend as a percentage of revenue?

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Newspaper marketing

Update on the Herald Sun Australia Day newspaper hat giveaway

out_of_australia_day_hats.JPGI thought I’d update how the Herald Sun Australia Day hat promotion panned out for us in our four shopping centre based newsagencies – two I own and two in which I have a 50% share.

In one newsagency we received around 30% more hats than Herald Sun newspapers.  This worked well for us.  We ran out at around 2pm with some of our newspapers still left to sell and while we faced frustrated customers, by that time of the day they were okay about it.  Our distribution newsagent had given us as many as possible.

In another newsagency we didn’t receive any.  We approached the supplying newsagent and we had to go pick up the stock.  They gave us hats for around half our Herald Sun stock.  Since we are outside a busy major supermarket we were, naturally, out of stock within an hour.  We called for more stock and while a staff member answering the phone told us they had plenty the newsagent said they had none.  Our people spent the rest of the day fending off upset customers.

In our third newsagency we received enough hats for 60% of our Herald Sun stock.  We were out by 11am and the newsagent did not have any more stock.  Again, upset customers.

In our fourth newsagency we received hats for 30% of our Herald Sun stock.  We were out of stock of hats by 10am.  The supplying newsagent agreed to give us five more – we had to go and pick them up.  they were gone in minutes..  Being right outside a supermarket we were getting hit hard for hats.  Plenty of angry customers for the rest of the day.

I don’t know where the supply problem is – with the Herald & Weekly Times or with the supplying newsagent – but I do know that there is a problem and the team at the front counter in newsagencies like mine are left dealing with upset and, occasionally, abusive customers.  The damage to the reputation of our business and to the name of the Herald Sun is, in my view, considerable.

I love the Australia day hat promotion but, as is so often the case with newspaper promotions, am highly critical of the execution.  What is the point if these things are executed so poorly so often?

I’d like to see the circulation people at the Herald & Weekly Times  host a meeting with retail and distribution newsagents and work out a plan which serves customers better.  If we get that right then the publisher, the retail newsagent and the distribution newsagent all win.

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Newsagency challenges

Herald Sun DVD promotion a winner

news_dvds.JPGThe Discovery Channel DVD promotion with the Herald Sun is popular and driving sales.  It is the kind of newspaper promotion which works well for newspapers.  It also works for newsagents because we are setup to manage fulfillment.  Even though margin is not what we would like we are happy for the guaranteed trafffic commitment.

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Newspaper marketing

Newspaper freebie fails

fhn_papers_freebies_oct10.JPGThe gifts offered with newsapapers on Saturday (Herald Sun – free Intralot lottery scratch ticket and The Age – free Ferrero chocolate) didn’t work as intended in our newsagencies.  No measurable kick in sales and no strong interest by customers in the freebies.  I am surprised by this – for the lottery ticket especially.

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Newspaper marketing

Newspaper publishers need to engage retail only newsagents

Newspaper publishers are missing opportunities to grow their businesses by not directly engaging with retail newsagents.  They will engage directly with supermarkets on promotions as well as convenience stores, petrol outlets and coffee shops.  But not retail only newsagents.

While I understand the challenge they face navigating the distribution newsagent relationship, by standing behind this wall, as it is in some cases I hear about, they miss sales growth opportunities.

There are plenty of proactive retail only newsagents keen to work with publishers on growing sales.  I know because of the direct feedback I had to my post here past week on this topic.

The next step is up to the publishers.  Do they want to grow sales in the retail newsagent channel?  If so, engage!

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Newspaper marketing

Memo to newspaper publishers: Help us sell more newspapers

While newspaper publishers continue to focus attention on driving home delivery subscription sales and chasing retail sales outside the newsagency channel, I have been thinking about tactics which could be used to help drive single copy newspaper sales in Australian newsagencies.

Sure, CDs, DVDs and promotions like the Simpsons stickers drive sales, the incremental sales are more about the giveaway product than the newspaper. We need people to buy a newspaper for the newspaper itself.

I’d like to see publishers invest in the news part of newspapers. Not magazines and supplements which are more ads than content. Enough already. Here’s an idea, focus on the news. Make newspapers appealing for the news.

Once the product is more compelling, engage with newsagents in a marketing strategy to drive over the counter sales. Use the specialist retail channel for the purpose for which it was created.

Here are four newspaper marketing ideas I think are worth trying worth trying in a direct partnership between retail newsagents and newspaper publishers:

  • Would you like fries with that? Offer a newspaper for half price with a lottery ticket sale. Very simple offer. Just asking the question will win some business. Kick it up a notch with a coupon for redemption within seven days for another half price newspaper from the same newsagency. The coupon could even offer a discount for each of seven days.
  • Upsize Offer a customer buying a newspaper any other newspaper for half price. While publishers may argue about who pays for this, why not try the idea at least and measure consumer engagement.
  • Bulk buy and save Pay today for 25 newspapers and we will give you 30. This respects the regular newspaper shopper and locks them into the newsagency. This will drive loyalty from the newsagent back to the publisher.
  • Go and play Give participating newsagents, say, fifty extra newspapers a day and ask them to develop their own tactics for selling these. The key is they must sell them for something and to customers who would otherwise not have purchased the newspaper. The feedback could unlock other marketing ideas worth rolling out across the channel.

I know that publishers have considered some of these before. Indeed, I have been involved in such discussions My experience is that they over complicate single copy marketing. They let the glory of a home delivery subscription pull focus from a very different yet lucrative opportunity.

I want to sell more newspapers but I want to do it in a way which builds repeat business and which does not dilute my return from this already slim margin product.

I’d certainly like to try any or all of these ideas and I bet other retail-only newsagents would too.

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Newsagency opportunities

Managing the Simpsons Sticker campaign

simpson_stickers.JPGWe approached the management of the Herald Sun Simpsons Sticker campaign the same way we manage other newspapeer part series.  Customers can preorder the whole series.  We record their details on a sheet.  While we could use our point of sale software, it is faster and easier to use a single sheet to take track who has collected which part of the series.  We only accept preorders when the entire order is paid up front.

simpsons_sheet.JPGClick on the image on the left to see a larger version of the sheet we use to manage the process.  We have been using this approach for two years with success.

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Newsagency management

Gold Coast Bulletin sets newsagents up

gc_bulletin.jpgAcross the top of the masthead of today’s Gold Coast Bulletin is their offer of a free Roary the Racing Car DVD.  Take this token to your newsagent they advise.  The problem is that newsagents appear to have been provided insufficient stock.  With enough for their own customers, newsagents do not have enough stock to satisfy customers bringing tokens from newspapers purchased from Coles, Woolworths and other outlets.  When they tell customers they have run out, the customers will blame the newsagents.

I am grateful to a Gold Coast based colleague for providing photos and details of this story.

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Newsagency challenges

News Ltd pitching online newspaper subscriptions

I was surprised to see the Adelaide Advertiser make noise the other day about their online subscription offer. Smart Edition, as it is called, costs $2 for a single copy – less per copy for a longer commitment.  News Ltd has offered this for some time for titles like the Herald Sun and The Australian. So, I am not sure what is new about this.

They are using the Newspaper Direct platform.  This is used by over 1,000 newspapers.

While I have doubts about the consumer interest in accessing newspapers in this way, newsagents ought to be across this pitch from News and the challenge it presents to our retail channel.

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Media disruption

Newspaper subscription offers for retail customers

I wish newspaper publishers in Australia supported the over the counter subscription system like the have in the UK.  Read how these subscriptions operate with The Guardian:

How does Guardian and Observer Subscriber work?
The subscription scheme is based on a voucher system. We will send you personalised, dated vouchers for each day of your package. You simply detach the appropriately dated voucher and hand it to your retailer as payment for your copy of the Guardian or Observer. You will receive a new set of dated vouchers every three months. Your retailer will be fully reimbursed for the full price of your newspaper.

Where are my Guardian and Observer vouchers accepted?
Most local newsagents, major supermarkets and petrol stations will accept your subscription vouchers as payment for your Guardian and Observer newspaper. If you have a problem using your voucher then please contact us on 0845 1204733 9am to 5pm seven days a week. Calls charged at local rate

My local newsagent already delivers my papers. Can I still subscribe and benefit from the saving?
Yes you can. If your local newsagent already delivers your papers to your home, simply hand your Guardian and Observer Subscriber vouchers for the relevant month to your retailer and these will be put towards your bill. Please note that you will need to arrange home delivery of your papers directly with your newsagent who may charge you for this service. Home delivery is not part of the Subscriber scheme.

While I am sure there would be some bumps with implementation, something along the lines of what The Guardian offers would drive sales more days of the week.  I have pitched this several times over the last few years and failed.  Maybe others here, if they like the idea, could pitch it to their publisher contacts.

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Newsagency opportunities

The Illawarra Mercury subscription deal

imer.jpgI’m told that there is a post-it ad stuck on the front cover of the Illawarra Mercury today promoting a home delivery offer. Pay $4.00 a week for six days of the newspaper. The usual price for six days is $7.50 plus a delivery fee. On top of the massive discount, which the newsagents is forced to partially fund, the publisher is giving away a $50 Coles / Myer Gift Card and a bunch of other freebies.

It is appalling that a newspaper publisher forces newsagents to pay for a campaign such as this when the newsagent has no capacity to balance the cost with other revenue in their business. It is an abuse of the newsagent / publisher relationship.  If I were affected by this I’d be asking the ACCC what the Trade Practices Act says about such an arrangement – despite that a contract between publisher and newsagent may speak to this type of deal.

The publisher is prepared to discount because they will win through protecting advertising rates by staving off circulation falls. The newsagent gets no cut from advertising.

I went to the Mercury website to check out the details. I clicked on the ad and it took me nowhere. So I clicked on subscriptions and was given the email address and phone number for the circulation manager. I clicked on promotions and found nothing about this. Someone in marketing stuffed up.

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newspaper home delivery

Buy a newspaper day

Chris Freiberg, a reporter at the Daily News-Miner in Fairbanks, Alaska, created Buy a Newspaper Day the day with a site on Facebook.  It took place on Monday this week.  Editor and Publisher has some coverage on the idea.  I like the initiative.  A check of Google News shows that it did not receive much coverage in newspapers. The blogosphere has considerably more coverage.

Like Magazine Week in the UK, Buy a Newspaper Day is designed to (re)focus the mind of consumers on print media.

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magazines

Newspaper half price offer misses opportunity

While on the Gold Coast yesterday, I saw the coupon being used in the Gold Coast Bulletin newspaper to attract consumers to the half-price offer. Prominent in their pitch is a drive for subscription sales. Given the retail only status of some newsagents involved in the campaign, this ultimate goal of taking sales from retail to home delivery is cheeky.

While I accept that the publisher has to try and drive sales, I think the Gold Coast Bulletin publisher is missing an opportunity to build loyalty around consumers who prefer an over the counter newspaper purchase. I am certain that newsagents would embrace such a campaign.

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newspaper home delivery

Sunday Mail National Geographic DVD mess

It has just gone 9am in Queensland and many newsagents have already exhausted all of their stock of the National Geographic DVD which comes with today’s Sunday Mail newspaper. I have heard of customers abusing the newsagent when it is Queensland Newspapers at fault. They should not run a promotion unless they have sufficient stock for all newsagents.  Even one newsagent being out of stock by 9am on the first day is enough to label this a mess.

When the Herald and Weekly Times ran this National Geographic promotion in Victoria last year my experience was that stock availability was good. It worked for us and the newspaper brand. This does not help Queensland newsagents, many of whom have a day of frustration ahead.

News Ltd lets each state handle these things. For years they have known of problems with promotions in some states yet they do not intervene. In the meantime, newsagents and consumers lose out.

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Newsagency challenges

Sunday Mail botches Australia Day promotion

sm_flag.jpgQueensland Newspapers made a heap of noise a week ago about the Australia Day promotion they were running in the Sunday Mail. On the 18th they had a spread on page 3 about the free flag they were giving away on January 25 and listed all the things you would be able to do with the flag. I have been told by a friend that along with their 244 copies of the Sunday Mail yesterday they received 20 flags. While they were able to scrounge another 50 flags from their area manager, it was still not enough. This promotion tarnishes the reputation of newsagents in the eyes of consumers more so than Queensland Newspapers.

Newspaper publishers need to learn that they should not start a promotion unless they have the capacity and commitment to ensure it reaches its full potential.

Queensland Newspapers owns an apology to Sunday Mail readers and newsagents.

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Newsagency challenges

Newspaper home delivery worth more than retail

age_jan17.JPGBeyond the trashing of the mastehad of The Age newspaper today with another of their home delivery subscription offers is the frustration of this type of campaign for a retail newsagent.  They are prepared to give their home delivery customers a 50% discount yet their regular retail customers, who have a lower distribution cost, no reward for loyalty.  And they wonder why I will not actively promote their online businesses or subscription offers in-store.

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Newsagency challenges

Making good newspaper news in Australia

There is plenty of good news we can make about newspapers in Australia, to balance my three posts from earlier this morning.  While none of the items below will ‘protect’ the whole category, combined, they make newspapers interesting for newsagents who embrace them.  We have an opportunity to make business decisions in pursuit of better sales:

  • Local newspapers sell.  Take the Melbourne Observer.  Once customers know you have it they are loyal.  We can sell 100 copies a week.  Customers come to us because we have it.  There are plenty of local newspapers like this around the country.
  • Foreign language newspapers are growing.  Unit sales are up 10% year on year and even more in many newsagencies.  They drive good add-on sales in various categories.  The key is to display them well and offer a good range.  The challenge is the restrictions applied by some distributors who will not provide direct accounts and therefore lose sales.  Foreign language newspapers account for 12% of our newspaper sales at Forest Hill.
  • Special interest papers sell.  Newspapers about racing, motor sports, collectibles, markets – local interests.  Some newsagencies feature these and have found regular customers and good growth.
  • Rewarding loyalty works.  With publishers placing their product in various locations – petrol, convenience, coffee – newsagents could run their own loyalty club specific to their store and thereby own the customer.  The key with any loyalty program, however, is to not reward usual behaviour but reward above average behaviour.  Some newsagents reward usual behaviour in other categories and it does not benefit their bottom line.
  • Sell the free local newspaper.  Most local newspapers are delivered free of charge.  Some newsagents give them away in their shops.  Since this is a service for which there is a cost, consider a charge to reflect your investment.  A smart publisher will support this and thank you for promoting their brand.
  • Co-locate.  Putting newspapers in a second location in your shop, at the lottery counter for example, will win additional sales.  The key is to change this.

While there is no doubt that newspapers are challenged, newsagents can take actions in their businesses to soften the impact of any downturn.  My list is far from complete.  The key is to do something rather than watch the tide come in (or the tsunami if you believe that).

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Newsagency challenges