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Ugh!

Sex slave book from Gotch

sex-slave.JPGGordon and Gotch sent out this book, Sex Slave, to some newsagents with their magazines.  I bet magazine publishers would not be happy with it being treated like a magazine.  Newsagents are certainly not happy – a book at magazine margin, an odd size for newsagency fixturing and delivered late in the month putting newsagents out of pocket for at least a month.

While I am no lawyer, I consider the supply of books to newsagents without giving us the opportunity to say no is an abuse of the magazine distribution model.

I didn’t receive this title so I cannot protest.  If I did, I would certainly protest to Gotch and use any other low cost regulatory avenue available.

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Book retailing

Using (abusing) newsagents to sell books

supersize-book.jpgSome newsagents received this book with their magazines this morning.  Did you?

Magazine distributors should not be sending this type of product through the magazine distribution channel without gaining permission from newsagents first.  Beyond the margin problem there is also the issue of where and how to display the product.  Sure newsagents could put it with other books but they are often remainder books.

As with the John Tickell book last year, supply of this book through newsagents is ridiculous.  It sucks out cash on the last day of the month.  It is an abuse of newsagents.

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Book retailing

Disappointing move by Darrell Lea into Woolworths

dl-woolworths.JPGI have been thinking through the move by Darrell Lea to place their liquorice in Woolworths supermarkets.  It does not make sense to me.  Darrell Lea has been demanding of their licencees for many years, requiring that their product be displayed in Darrell Lea fixtures to respect the brand and requiring that we take a minimum range of product and not just top sellers.

There are many rules, rules which most newsagents have embraced because they want the point of difference that carrying the Darrell Lea brand brings.

Given that liquorice is the stand our top seller for Darrell Lea, newsagents and other Darrell Lea stockists have lost the point of difference.

While we will still sell Darrell Lea to our shoppers, there will be some who stop buying.  These are the regular (pun intended) customers who stop by each week for their bag of Darrell Lea liquorice and nothing else.

This move by Darrell Lea is like the move by newspaper publishers and magazine publishers into supermarkets and other retail channels.  They still require us to adhere to rules which they ignore for their new retail buddies.  We are restricted in what we can do while the new channels have more control – with magazines especially.  The rules for us versus them make us less competitive.

Darrell Lea are doing what they think is right for their business.  Good luck to them.  As a Darrell Lea stockist I am left wondering about all of their preaching for many years about the respect they want from retailers for their brand.  Going into a mass network like Woolworths throws all that preaching out the window.

I saw their liquorice in two Woolworths supermarkets yesterday.  It was lost in a sea of candy and treated the same as the cheap liquorice next to it.  Back at my newsagency, Darrell Lea continues to be treated as a hero product, situated on the Darrell Lea required wood stand and located in just about the best position in-store.

It feels like Darrell Lea does not respect its long standing retail partners.

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confectionary

High returns cost for double magazine pack

magazine-returns.JPGWe sold half of the double back of The Australian Women’s Weekly and Good Health.  A chuck of the margin we made from the sales was lost as we had to pay $8.00 to ship back the returns – yes, these double packs have to go back as full copy returns.  This is a problem with packs which are experimental in newsagencies.

I’m not given a choice on participation and therefore not given a choice on the costs associated with the promotion.  I am happy to consider participation if agreement can be reached on performance and the cost of a pack not meeting reasonable KPIs. I’d expect that supermarkets would have similar requirements.

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magazines

Smutty wrapping paper

smutty-wrap.JPGWe encountered a customer on Saturday who was angry about this wrapping paper from Hallmark.

I heard her complaining to one of our team members at the sales counter, telling them, and other shoppers nearby, that we should remove the paper from the shelves.

Our staff were busy serving customers and couldn’t engage that much. She went back to the paper display.

I’d heard the comments from elsewhere and went to speak with her, expecting to find that it was a prank.

The disgruntled shopper was in front of our wrap display, busily removing the product which offended her. Seriously.

I advised that we would continue to sell this design. She reiterated that the product was rude, disgusting. She said she would complain to centre management.  She eventually left but not before complaining to other team members.

Customers who heard her comments were surprised and sympathetic towards us.

Some days, people working in newsagencies face the most unusual experiences.

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retail

Spot the wedding magazine

smallwedmag.JPGThere in the photo, just peaking out above Bridal Showcase, is a small format wedding magazine which has not been designed for traditional newsagency fixturing.  You can barely see 1cm of the cover. While I am sure that the publisher has their reasons for the small format, maybe newsagencies are not the appropriate retail outlet given what the majority of us have in terms of display fixtures.

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magazines

Unsold magazines to cost shopping centre newsagents more?

I have heard from a newsagent that one landlord is reportedly to impose an additional charge for handling the recycling of unsold magazines.  For years, this landlord has allowed paper waste to be dumped in the recyclind dumpster.  Now, in the era of imposing charges for every possible thing, the landlord has said that the newsagent needs to pay a premium fee because of their recycle volume compared to other stores.

This issue is not yet resolved. Hopefully, commonsense will prevail once the landlord understands where control really lies on the volume of materials to be recycled.

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magazines

Will Ralph ever die?

ralphcirls.JPGI thought Ralph magazine ceased publication dur to poor sales. This morning we received another Ralph related title which is apparently recycling Ralph content including photos of girls.  While it may sell in some newsagencies, I don’t see it working in most.  Call me a cynic but the girls of Ralph did not save Ralph so why roll them out now?

Now, more than ever, every magazine on our shelves need to pay its way. In a shopping centre newsagency this means 60% sell through or better. I am not expecting a 60% sell through for the Girls of Ralph.

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magazines

Frustration with Herald Sun promotion

While I like the cook book collection promotion being run by the Herald Sun, I am sorry for anger the team at one of my stores had to put up with today. There, we received enough copies of the free Jamie Oliver cookbook for the number of newspapers we received. This meant we had no real capacity to satisfy the many customers who came in with coupons from home deliveries and newspapers purchased elsewhere.  While some customers understood, others were downright abusive.

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Newspapers

Three ‘new’ magazines from Universal to clog newsagent shelves

bonuspacks.JPGWe received three new ‘titles’ from Universal Magazines yesterday.  I say ‘titles’ because they are actually packs of old titles bundled together to give them another go around.  If we are to keep this stock we have to find space for the new product.  If we do what Universal wants, we have to carry this stock for three months.

Had I been asked if I wanted my cash, retail real-estate and labour used in this way I would have said no thanks.   I am satisfied with the range I have of fresh backyard, scrapbooking and quilting titles.  I certainly do not need these packs which contain product which has failed to sell previously. I do not need more old bagged product acting as a barrier to a happy browsing experience.

Just how many times can a title be sent out before it is considered dead?  How is this recirculation accounted in reports to advertisers?  How is it handled in an audit situation?

It is an abuse of the newsagency channel that we are sent this stock without approval.  While Network Services and Universal Magazines will say that they have every reason to believe these products will sell, their justification will not take into account the costs newsagents incur in carrying the stock.  Their behaviour shows little belief in that.  If they did believe the titles would sell then they would have requested a top only return.  Instead, they require a full copy return – maybe so the titles can be sent out again.

Universal will complain that I am targeting them.  They set themselves up for this complaint by bundling old product and sending it out to newsagents expecting us to fund their decision and expecting us to fund the costs of carrying the stock.

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magazine distribution

The weight of magazine inserts

Newsagents, have you every collected all of the advertising inserts from magazines you receive on any given day?

I have heard from a newsagent who did just that recently.  The stack was 25cm high and weighed close to ten kilograms.  The newsagents dumped the lot, prefering to fit more magazines per pocket than give the expensive retail space over to advertising from which newsagents receive no share.

Thinking about this, imagine how much we spend paying to return full copies of unsold stock with these advertising inserts.  What a waste.

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magazines

Why the late return for the AFL Footy Record Gotch?

Gordon & Gotch has asked newsagents to retain the AFL Grand Final Footy record until the end of October, saying that the title will sell for weeks after the Grand Final.  I am not sure where they get their data as my experience is that we would be lucky see sales beyond the big day.

If newsagents follow the Gotch advice, returns for the Footy record will fall into November returns and a credit not appear until the December statement.

I will be returning my stock, if there is any, the week after the Grand Final.  It’s my money.

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magazine distribution

Where is the barcode for That’s Life?

tl-coverup.JPGThe printing on the packaging for this week’s issue of That’s Life magazine covers the barcode and slows down the sale process slightly.  While a minor point it is important in high volume retail and in a channel where so much emphasis is placed on accurate sales data.

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magazines

How the NDD closure is challenging for some newsagents

NDD is working through the process of winding down the business including the settling of newsagent accounts.  They are being transparent with newsagents on timing and fulfilling commitments they have given in terms of payment of credits.

The challenge, however, is that newsagents can find themselves waiting for a refund from NDD while facing bills for stock previously supplied by NDD which is now supplied by another distributor.  I have seen cases recently where the cash flow cost of a title has doubled as a result.

It is disappointing that newsagents, the weakest partner in the magazine supply chain, are the ones carrying financial cost of this.

No one party is to blame but the publishers and distributors involved could have seen this challenge and assisted newsagents accordingly.

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magazine distribution

Lack of faith in the Minogue sisters

monthly-sep2010.JPGI was surprised to see a significant dip in our supply for the latest issue of The Monthly.  While our sales data indicates a cut is warranted, the extent of the cut is odd, especially when considering that this month features Melbourne’s own Minogue sisters.  They alone should help drive additional sales.

Despite the cutback, we are promoting The Monthly with an in-location display placed so that everyone entering men’s magazine aisle, where The Monthly usually rests, sees the title as well as around 50% of women entering the women’s magazine aisle. With Kylie and Dannii Minogue on the cover the magazine has significantly broader appeal this month.  Someone appears to have missed that.

Hopefully, we sell out and make a point to someone about a missed opportunity.

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magazine distribution

M2 magazine cover-up

m2-blocked.JPGWARNING: The last time I wrote about this topic a merchandiser responsible for the placement of a backing card unfairly got into trouble. This blog post is not about merchandisers. It is about deals magazine distributors do selling access to my space without compensating me.

The distributor for M2 magazine arranged Iand probably paid) for this header card to be placed behind the stock for M2. I doubt that the magazine distributors are organising this for free. If I am right then I ought to be paid a fee for allowing this to be done in my store.

Publishers need to realise that while they pay distributors a fee to place header cards, create displays and use newsagent space in a range of ways, newsagents are not compensated.

While some will say that our compensation comes in the form of sales, this is not always the case.

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magazines

Poor packaging mars Vogue promotion

vogue-bag-aug10.JPGThe bag with this month’s Vogue magazine is a good cut through promotion.  It stands out on the shelves.  The problem is the plastic bag the magazine and the free bag gift and packaged in.  It is thin.  More than a third of our stock was damaged.  Some of the gift bags were damaged or dirtied as a result.  Size is also a problem – This requires a double width pocket and you can only fit one magazine in the double width.  While we have half a waterfall of stock displayed this way, we have more stock displayed in the dump bin in the photo on the dance floor.

Attention to execution is key for a successful premium promotion.  This latest promotion damages the Vogue brand in my eyes – I say that after having to try and repair packaging for many of the units we received yesterday morning.

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magazines

Take care with some XchangeIT advice

My newsagency software company is getting calls from newsagents encountering issues following changing some system settings under the direction of XchangeIT.  While the XchangeIT support people have the best intentions at heart, some changes are best left to the people who know more about specific system settings.

Newsagents who are advised to change settings on their computer system by XchangeIT ought to check first that the advice is approved by their software company.

This situation is quite recent and I am hopeful that it will be addressed quickly.

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newsagent software

Bagging Golf Magazine does not drive sales

bagged-golf-mag.JPGHere is another example where bagging a magazine with an old issue has not delivered the growth publishers talk of for bagged product.  The new issue of Golf Magazine went on sale yesterday so I checked sales for the old issue (pictured) which was bagged with a previous issue … no sales lift for us.  I doubt publisher claims that bagging a magazine with an old issue lifts sales – show me sales data and I may change my mind but in my store I am not seeing it.

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magazines

Herald Sun promotion diverts traffic from newsagencies

The folks at the Herald Sun have launched a marketing campaign designed to switch newspaper home delivery customers to a full subscription service.  The  commercial risk for newsagents of this campaign, if I understand the campaign correctly, is that it drives existing customers from paying in the newsagency to paying the publisher direct by credit card.

The potential loss of customer foot traffic is considerable, especially in rural and regional newsagencies.

Paying the newspaper home delivery account has been a key traffic generator for newsagencies, important to other sales and an important factor in assessing business goodwill.

Publishers ought to be driving newsagency foot traffic and not implementing offers which put it at risk.

The Australian retail newsagency channel is unique in the world.  It is a full service offer, excellent at driving sales for publishers and committed to brand building promotions.  Keep chipping away at the channel and one day you will find it has all but disappeared.  This comment right here is amied at ALL publishers, magazine and newspaper, large and small.

This Herald Sun promotion was announced to newsagents on Monday of this week.  Outside of the issues noted above, it is, in my view, time consuming and complex for distribution newsagents to manage.  The publisher could have made life much easier for newsagents had they engaged with the newsagency software companies in advance of their announcement.  Their poor organisation has caused considerable stress for newsagents and generated extraordinary calls traffic to newsagent software companies.

A bit of professional planning and consideration for newsagents could have saved countless hours being wasted over the last couple of days.

I know that what I have written will annoy / anger /frustrate the folks at H&WT.  Cop it on the chin guys and learn, once and for all, that you have to consider and consult with others before you announce any home delivery offer.

I am all for growing newsagency businesses – but not with a rushed campaign which appears, from where I sit, to have not been thought through.

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Newsagency challenges

Promoting alternative newspaper channels

mcdonaldsad.JPGIt is disappointing to see newspaper publishers actively engaging with alternative retail channels as we have seen in Victoria over the last few weeks with the Coles promotion and now the McDonald’s breakfast promotion – both with the Herald Sun.

Newsagencies remain the best retail outlet for newspapers.  We are full service, efficient, friendly, local and support brand building promotions.

A smart publisher would engage with newsagents to drive retail sales.  I have pitched many ideas over the years and while none have been taken up, I am sure that not every idea was worthless.

Coles and McDonalds promote newspapers as an add-on to their core offer.  Newsagents will promote newspapers as a core offer, unless we have reason to look elsewhere for a key traffic generator.

At some point in the future, magazine and newspaper publishers will wonder whether chasing sales outside the newsagency channel was good for their business.

It is not too late to engage with retail newsagents and develop mutually beneficial business building ideas.

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Newsagency challenges

Do you have too many backyard and garden magazines?

outdoor-mags.JPGNewsagents should check their shelves and see whether they have these titles: Green Garden & Home, Backyard & Garden Design Ideas, Backyard Landscapes, Good Garden Design and Outdoor Entertaining. They are all from Universal Magazines, part of their Backyard range and they all fit within a small category niche within the magazine department.

Five titles from one publisher makes it difficult for other publishers in this niche. It makes me wonder if this is a strategy from Universal, publish a bunch of titles in a niche as a kind of land grab. That is only speculation though as I am not privy to their strategy.

I’d encourage newsagents to check their shelves and then check sales data. If you have these five titles or even four, you have to ask yourself if you could achieve the same sales with one or two titles less.

Given that a magazine pocket in a shopping centre newsagency needs to return at between $8.00 and $15.00 a month in margin to cover its costs, it is appropriate that we ask ourselves if we have too many magazines in a niche.

Magazine distributors and magazine publishers have a commercial, ethical and moral obligation to newsagents to use our limited space efficiently. After all, we carry the cost of labour, real estate, returns freight and theft. In the case of titles with a greater than 30 day on-sale, like some of these, we also become the banker as it is our cash which is at risk which we have the stock.

The five magazines from Universal in the one niche is concerning. I have written about it this morning to ensure that newsagents are better informed.

But back to the question – Do newsagents have too many backyard and garden magazines? If I had all these five titles in my store the answer would be a resounding yes!

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magazine distribution

Australia Post partners with OfficeMax

OfficeMax and Australia Post have done a deal whereby the Australia Post brand is being used to sell to launch an online office products store operated by OfficeMax.

This is a great leg up for OfficeMax as they can rely on the respected and proteected Australia Post brand to drive the business.

It is also another example of Australia Post leveraging its government ownership to take business from independent retailers like newsagents.

Sadly, the current and previous governments have not had the guts or desire to stand up to Australia Post and keep it focused on being a postal service rather than a commercial brand taking business from family run businesses like newsagencies.

If we were smart as a channel we would protest long and loud about this and fore the politicians to make a policy decision which stops Australia Post taking food off our tables.

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Australia Post

Monument magazing land grab

monument-agu2010.JPGI love it when merchandisers visit and make a change without getting permission which impacts another publisher, a change for which they are probably paid a fee.  Look at the photo and the hearder card inserted for Monument magazine.

The folks at ACP should check the photo carefully – maybe a call to the merchandising company is in order.  They may listen to you.

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magazines

Too many titles from Universal Magazines?

universal-magazines.JPGWith four quilting related titles on the shelves from Universal Magazines at the same time and other titles also demanding space, something had to give.  Our decision was to early return one of the Universal titles.  Retail real estate is expensive, especially in shopping centre newsagencies.  Titles with a shelf life of more than 30 days, regardless of the billing arrangements, need to come under focus as do titles from publishers who can flood a category and suck oxygen from other titles.

Giving our space for free to publishers, funding their cash flow requirements and paying to return stock which fails to sell is a very generous magazine distribution system.  Our generosity ought to be met with some obligations.

Newsagents need to be able to control the titles they receive and the volume and to know that their decisions will be honoured for the long term.

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magazines