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Ugh!

Parties for Kids no party for newsagents

parties_for_kids.JPGWe received Parties for Kids from NDD a couple of days ago. It’s dated, on the cover, Autumn 2006. Seriously!

Judging by the noticeable discoloration on the cover (click on the image to see the detail of this), I’d say this is stock from the back of a warehouse somewhere which someone decided to ship out because they needed cash. No wonder newsagents often consider themselves the dumping ground for some magazine product.

We will early return our stock next week. I don’t see any value on a discoloured four year old title taking up space on my shelves, especially since the segment is well covered by current day product.

That a distributor sees fit to circulate four year old title, damaged stock, to newsagents asays a lot about the sick one-sided magazine distribution system in this country.  Parties for Kids is the kind of title which makes newsagents angry and diverts our attention, space and cash from more important titles.

Good publishers should help us stop titles like this being distributed. However, since they all are guilty of sending junk, we ought to develop mechanisms to protect our assets from abuse.

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magazine distribution

Hiding the magazine masthead

magazine_coverup.JPGSome publishers just don’t get it.  Promoting a triple pack is more important than promoting the title itself.  Maybe they think this is what gets people picking up titles in-store.  They should ask customers what they think about these packs.  I see them as lazy marketing.

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magazines

How Australia Post uses the postal service to hurt newsagents

auspost_reflex_feb10.JPGI received a letter a week ago offering Reflex delivered to my office free for $4.89 a ream.  No newsagent can compete with that price since we don’t have the buying power of a federal government protected monopoly behind us.  We also can’t compete on brand recognition.  Australia Post has great brand recognition because of their protected mail services.  As they say, they are part of every day.  They are only part of every day because the government protects them.

Successive governments, Liberal and Labor, have permitted Australia Post to morph into a broad retail network with a key focus on stationery usually sold by retailers such as newsagents.

Every dollar they suck out of the economy for Reflex and similar excellent deals is a dollar less small business newsagents and other retailers can make for private enterprise.

I don’t blame Australia Post. Their bosses, successive governments, have allowed them to run loose.

This is a policy issue.  Politicians need to decide how they feel about a government owned and protected retail network of 865 stores using their guarantees customer traffic (thanks to protection) competing with independent retailers like newsagents.

If I were a politician building an election year campaign on working families I would want to make sure that I actually supported working families, like newsagents.

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Australia Post

Bushfire book late, small and overpriced

bushfire.jpgWe received Beat the Bushfire Enemy with Knowledge book from NDD this morning.  It’s $22.95 with a four month on sale.  Ridiculous!  It’s an odd size (A5), out of season, has a long on-sale and is priced outside reasonable for most newsagency circulation product.  We have already given our free booklets on bushfire readiness.  Newsagencies in bushfire areas have had stock of other titles for some time.  I don’t see any upside for newsagents in being given this title by NDD.  We are early returning our copies – it’s crazy that we pay for this.

Titles like this affect other publishers because they suck newsagent time, space and money.

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magazines

Missing People’s Friend

peoples_friend_stock.JPGWe see to have delivery problems with People’s Friend in any one of my newsagencies every second week.  Yesterday, it was Forest Hill’s turn.  This would not matter if the title was not so popular but with 20 putaways and only a couple off copies left for the shelves we will have between 30 and 50 unhappy customers.  We have spoken to Gotch about this and they have an answer for each occurrence.  I suspect a more systemic problem.  I’d be interested if other newsagents have People’s Friend delivery problems.

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magazine distribution

Fat Auto Salon magazine

auto_salon_fat.JPGAuto Salon magazine is fat this month thanks to the two old (but free) back issues the publisher has bagged with the title.  The thickness of the Auto Salon package means that we cannot place in its usual location.  We had to bump a more popular title from their flat-stack location.  The publisher ought to pay for this.

The other problem with the fat Auto Salon this month is the bagging of the issue. Anyone who knows anything about car magazines knows that these titles are among the most popular browsed titles in a newsagency.  Bag it and you reduce browsing.  Some publishers tell me that bagging an old issue with a current issue drives sales.  I doubt that.

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magazines

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

The Source supply jump

the_source.JPGNewsagents may want to check their supply quantities for The Source this week.  In one of my stores our supply increased more than 100% on the back of sales data which suggested that no such increase was warranted.  Maybe it’s the Snoop cover but I doubt it.  While there will be an excuse, those making it will not have the financial stake I an other affected newsagents have.

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magazines

How do you justify a 600% increase in magazine supply?

gameinformer.JPGWe received four copies of the last issue of Gameinformer magazine.  Yesterday, we received twenty-four copies of the latest issue.  A 600% increase in supply is extraordinary even though we did sell out of the last issue.  It is easy for magazine distributors to be bullish about a title for it’s not their money, time or space at risk.  I would have like a request for permission to increase supply beyond a reasonable 100% in the case of a sell out.  Had I been asked, for it is my money after all, I would have agreed to a 100% kick and an agreement to more if sales warrant during the on-sale. While distributors don’t want excess stock in their warehouses in the event of a need, the current approach of making us the warehouse (and bank) is unreasonable as the 600% increase in supply of Gameinformer shows.

Maybe I am missing something here.  Maybe there is a reason for the increase.  I am sure that the publisher will say it is because they are pushing the title.  That’s fine – but a 600% increase?  I am carrying the risk for them along wit, maybe, thousands of other newsagents.

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magazines

Fat supply of Weight Watchers Cook Easy

weightwatchers_cook.JPGNetwork Services sent us 20 copies of Weight Watchers Cook Easy. It has a return date of 2016. We don’t have space for another cookbook so will have to take space from the ACP cookbooks.

To give the title a kick we are using a spare ACP stand for the next few days to try and shift some of the stock. We have to do something with it given that we’d have to pay to return this gross oversupply.

The sooner they bring on sales based replenishment for titles like this the better.

While the folks at Network will have their excuses, they will not be good enough. It is not their real-estate or cash at risk with Weight Watchers Cook Easy.

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magazine distribution

Displaying the free travel bag with Vogue

vogue_bag_feb09.JPGThe free travel bag which comes with the latest issue of Vogue, on-sale today, is a challenge to display.  It will not work in regular magazine fixturing so we are displaying it in a feature space.  To me, Vogue is a destination purchase.  I have no evidence to support this, it’s just a hunch.  The large bag means that our regular Vogue customers may miss the title. The other challenge is that the magazine is in a plastic bag with the free travel bag.  This will frustrate browsers who enjoy flicking through Vogue.

The upside is that the free bag may drive some impulse business – I guess this is what the publisher wants. In an ideal world, I could see Vogue being supplied bagged as it has been with a copy un-bagged, a free travel bag and a purpose created stang to display the gift, the magazine and to house the stock for customers who wish to purchase. I appreciate the cost of this approach would be prohibitive. The problem with what he have this morning is that every newsagent will handle this differently and this may reflect poorly on the brand.

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magazines

Attempted break-in

At around 5:30am yesterday someone tried to kick in the front door and a side window of one of my shops.  The police have video evidence from centre management as well as from our own security system.

While they were not successful, the damage and resulting disruption is considerable.  There is a very large glass window to replace and two doors to re-hang.

My thoughts on this go back to some of the comments from my arrest post last week.  If they are caught they will get a slap on the wrist and no real punishment.

I plan to find out the legal position on creating a retail crime shame site where we can all post images of people convicted of crime against retail businesses.

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theft

Beware Western Union scam email

There is a phishing email doing the rounds purporting to be from Western Union.  Some newsagents received this yesterday:

Dear Valued Customer,

This is an official notification from Western Union. Your account access has been limited due to a login attempt failure.

To restore your account we have attached a form to this email. Please download the form and follow the instructions on your screen.

Fraudwatch International has the details.  Their latest update was overnight.  If you receive an email like this: Do not respond, do not click on the link.

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Newsagency challenges

Superstars of New Moon rip off

superstars_of_new_moon.jpgSuperstars of New Moon sells of US$9.95 in the United States.  Here, it is priced at A$27.50.  I am surprised at the price difference given the current exchange rate between the two currencies.  Either someone bought badly or are making a ton of money.  The $27.50 price tag makes Australian newsagents look expensive.  This title is also late.  The New Moon market slowed once the movie was released.

Who wants a $27.50 magazine title on the shelves anyway?  Add to that the long shelf life – I don’t see much upside for newsagents in distributing this title to us now.

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magazines

Australia Post lets shoppers and tenants down

While I should be pleased that a competitor has been closed for four days, I am not.  Tenants in shopping centres rely on each other to do their bit draw traffic to their part of the centre.  The government owned Australia Post outlet opposite one of my newsagencies has  been closed since Christmas Eve.  This hurts our traffic.  It also makes shoppers angry and some take this out on nearby shops they visit.

If Australia Post sees itself as a mainstream retailer (and not a public service) it ought to start acting like one.

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Australia Post

Books masquerading as magazines

magbook.JPGI received two titles yesterday from Gordon & Gotch which should not be sent to newsagents unless explicitly requested.  Body Art 3 and It Happened to Me are fringe titles.  They are expensive – $24.95, have a long on-sale and deliver magazine margin for book products.  Gotch should know better.  If distributors want to use my shelves in this way then they need to develop a different model which takes all the risk.  Let me pay on scanned sales only.  Give me free returns freight.  Oh, and pay me for the use of my shelves.

There is bound to be an excuse, there always is.   In the meantime, from the moment the titles land on my doorstep, I am responsible.  No wonder newsagents get angry.

Magazine distributors often say that newsagents complain, make mistakes and are late at getting things done.  If we did not have to put up with stuff like this maybe we’d have more time to work on our business.

I expect better from Gordon & Gotch.

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magazine distribution

London newsagents pay to distribute free newspaper

According to a report at the Guardian, dozens of newsagents in London are paying 2 pence a copy to distribute the now free London Evening Standard from their shops.  Two months ago the Standard went from a paid model (50p) to free at the same time as changing its distribution model.  Newsagents wanting the traffic are demonstrating a preparedness to pay for this.

Will we do this here?

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Newsagency challenges

NDD delays returns benefits

Magazine distributor NDD had hoped to have introduced a more immediate credit process for magazine returns processed by newsagents through XchangeIT.  These changes are now not expected before March.  This will disappoint many newsagents who committed to XchangeIT on the promise of faster returns processing.

The issue here is cash-flow.  Every copy returned reflects cash owed the newsagents.  The poorer performing the title the more cash owed.

A fairer financial model for magazines would be where we pay on scanned sales.  As it stands, newsagents and publishers carry the risk and distributors nothing.  They are paid for everything they do regardless.  Every day we wait for a credit for stock which has failed is a cost to our business.

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magazine distribution

Auto salon magazine oversupply

auto_salon_oversupply.JPGEither the publisher or distributor is to blame for today’s oversupply of Auto Salon magazine.  Despite a poor sell through, some bright spark has decided we need more stock.  Well, no we don’t unless someone wants our cash for a while.  I am sure there will be an excuse, there always is yet the ‘gremlins’ which cause these ‘blips’ continue to have their way.  Maybe it is the free CD they are giving away.  I’d be surprised through – give the number of titles in the motoring section with freebies at the moment.  We will not sell the extra stock unless the publisher changes approach and drives traffic to newsagencies looking for this title.

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magazine distribution

Gold Coast Bulletin sets newsagents up for a tough day

gc_bulletin_dec14.jpgThe line above the masthead of the Gold Coast Bulletin newspaper today sets newsagents up for a rugged day once their allotment of fre.  Tear off the token and hand it to your newsagent it says. The colleague who alerted me to this promotion this morning received one DVD for each newspaper.  No backup stock for the customers coming from supermarkets, petrol outlets and convenience stores looking for their DVD.

So, what does the newsagent do?  Give out one DVD for each newspaper sold?  This would see them abused by customers who have walked all the way to their shop to collect the DVD.  Or, do they give our DVDs to every newsagent who presents with a coupon.  This would leave them without stock for existing customers and subject to certain abuse.

This is a good promotion, certain to sell newspapers.  The problem is the management of the DVD.  If you want newsagents to be the collection point then supply enough stock to enable them to represent your brand professionally.  One DVD per newspaper supplied to the newsagent is not enough in many situations for a popular free DVD.

We say this ourselves with the Herald Sun give aways last Saturday and Sunday.  The abuse from customers ran most of the week.  We were damaged and the publisher was damaged.

This is not rocket science.  Publishers and retail newsagents could work together to make these promotions work.  If only publishers would talk with us before setting us up for retail rage.

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Newsagency challenges

And the date is? Part 2.

ang_nov11_dec11.JPGCheck out the date on the masthead of The Age newspaper today.  It reads November 11, 2009.  Hmm, today is December 11, 2009. Oops.  It may make the newspaper a collectors item for those interested in such slip ups.  Click on the photo for a larger version.

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Ugh!

And the date is? Part 1.

alpha_jan09.JPGCheck out the date on the latest issue of Alpha magazine which has just hit the newsstands.  It reads January 2009.  Oops.  It should read January 2010.   While it won’t affect sales or sales data, there may be one or two questions.  Click on the photo for a larger version.

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Ugh!

Olivia Newton John CD causes retail rage

Yesterday, three days after the Olivia Newton John Christmas CD was given away with the Sunday Herald Sun, we continued to experience retail rage from customers who came in expecting we would have a CD available for them.

I have been getting my newspaper home delivered for 18 years one customer spat at our retail team in a tone which accused them of personally letting them down.

The CD was a huge success yet it was a failure too by giving customers a reason to be rude and offensive.

The intensity of retail rage, in my experience, is the inverse of the value of the product or service being raged about.

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Newspapers

The value of good visual merchandising

good_food_display.JPGI was at a newsagency recently and discovered that they had sold only two copies of the latest issue of ACP Magazines’ Good Food.  I was surprised since we have sold out of this same issue twice over.  They had the title on the shelves and the free sample bag in the back room – yes, the back room!  I took Good Food off the shelves and created the simple display in the photo on the corner of the counter at the front of the shop.

In just over a week they sold sixteen copies from this location.  A simple move and good sales as a result.

How often do we fail to make the most of a good business opportunity?  In the case of Good Food, the publisher has a good title promoted with a valuable giveaway and supported with strong marketing collateral.  While the original display in this newsagency looked attractive, it did nothing to sell the magazine on impulse.  Many good and great displays are lost in visually noisy newsagencies.  Too many displays are not in the right location to actually sell product.

We make excuses about being time-poor, not having space, publishers sucking our cash.  Sometimes we miss opportunities which lead us to see the magazine side of our business through negative eyes.

We need to be our own toughest critics if we are to make the most of opportunities which come our way.  Being average does not cut it in retail, not in this marketplace.

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magazines

The Monthly Christmas issue sucks cash from newsagents

the_monthly_magazine.JPGThe publisher of The Monthly magazine ought to look more carefully at sales data when developing allocations for their December/January double issue.  We received double our usual supply last week.  Last year, when they did this double issue, our sell through was 65%.  While this is a good number, it is not do good when you consider the two month on-sale period.  I’d be happy receiving half the stock this month and half next.  Instead, they suck my cash and the cash of every other newsagent by loading us up front.

In my newsagency, The Monthly sells steadily through the on-sale period.  This would be reflected in sales data provided to the distributor.   A split delivery would not harm sales based on what I see.  While there would be a higher distribution cost, that is a problem for the publisher.  The current approach makes it a problem for me and other newsagents.

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magazine distribution
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