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Ugh!

Herald Sun lets down readers with DVD offer

annabelles_wish_dvd.jpgThe Herald Sun today comes with a free DVD of the Disney movie Annabelle’s Wish.  We ran out of stock before lunch.  Home delivery customers and customer who purchased their newspaper at the supermarket were angry that we did not have their free DVD.  Some walked a considerable distance only to be let down.  Gross undersupply by the Herald Sun has meant that the free DVD has turned into a customer service fiasco.  We have made it clear to our customers that the Herald Sun is to blame.

I love promotions like this – if only they were executed better.  The messy system publishers use means that we are not able to leverage the promotion for our maximum value nor are we able to leverage it for the maximum value of the publisher.

I advised people at the Herald Sun that we would run low on DVDs.  That did not help.

If you want one of the free Olivia Newton-John CDs tomorrow, get in early.  If you’re in Forest Hill or Frankston, get in by 11am.  I’d note that if you want a set of Leunig cards, free with The Sunday Age, we have plenty of stock.

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Newspapers

Since when are maths books magazines?

fhn_network_learning.JPGNetwork Services sent us these kids maths books this morning.  We don’t want them because we already have kids maths books from which we achieve a 50%+ margin.  The stock we already have is part of a bigger retail story.  These two titles from Network are not part of a bigger story.  They have no place in our newsagency and are therefore being returned.  This is the second example of disrespect of the newsagency channel by Network.  This is my money being sucked up on non magazine product by a magazine distributor.  This must stop if we are to make the magazine department viable.

Network wonders why newsagents early return product.  Sometimes, they early return a successful title in a knee-jerk reaction to receiving stock like we did today which has no place in our shop.

I don’t care if network has data showing I will sell these titles.  I have this niche well covered with better margin product which I choose to stock.

Newsagents need more product in their stores which they choose to stock.

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magazine distribution

Newsagents ripped off with travel pads

fhn_network_travel_pads.JPGNetwork Services this morning sent our stock of the Pirates Travel Pad and the Princess Travel Pad.  I don’t want these products.  I have similar products which I choose to stock and from which I earn 50% margin.  Why would I want copycat product for a 25% margin – and with a three months onsale?  This product should never have made it to newsagencies.  I am early returning mine but still have to waste time and money on this.  And magazine distributors wonder why newsagents get angry.  While I am sure there will be reasons (excuses) for newsagents being supplied this product they will not wash.  These are not magazines.  They should not have got through any reasonable assessment for access to our channel.

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magazine distribution

Too many the Picture titles?

picture_magazines.JPGI understand the strategy of brand extension but do wonder whether ACP magazines has taken it too far with picture magazine. We have three additional the Picture branded packs – on top of the regular weekly title. The latest Picture extension which went on sale yesterday was supplied in almost the same quantity as the main title. Besides challenges for sales, these extra titles are demanding space we do not have. To make space, given that we cannot early return ACP titles, we have had to cut titles from lower profile publishers.

I know some folks at ACP will be disappointed that I have published this blog post.  I’d ask them to take a look at the issue, consider the space, cash-flow and other challenges with three brand extensions in an already full segment.  They should ask if they would be happy if it was their space, labour and cash involved.  I’d be happy to take anyone through the numbers.

The key frustration is lack of control.  I cannot choose to be in or out not only with ACP brand extensions but with titles from from other publishers too.  I’d like more respect for my space, more control.  I’d like to choose whether to participate in brand extensions.  This would help me make decisions which could lead to sales elsewhere.

ACP has many excellent brand extensions which I often blog about here. Picture extensions are frustrating because of my low sales and space challenges in the segment.

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magazines

Lost sales for Burke’s Backyard

Our Burke’s Backyard stock went missing in transit and when we called Network Services early Monday morning we were told that they were out of stock. I pulled some strings and got a commitment for replacement stock. This was due to arrive yesterday. Hopefully it will turn up on Friday.

My frustration is that Burke’s sells well for us early in the on-sale. Not having stock is costing us business. Had I not pulled strings we would have lost the business this month. Our regulars would have had reason to try somewhere else.

I am not sure who is responsible for the last of floor stock to address shortages but someone needs to address this. There are shortages of every title somewhere in the system. Magazine distributors need to better handle these if they want the newsagency channel to remain their preferred retain channel.

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magazine distribution

Covering the whole front page of a newspaper

age_nov2309.JPGThe Age and the Sydney Morning Herald newspapers are covered today with a translucent paper on which is printed an ad for the new Toyota Prado.  Customers are confused when they see the newspaper, thinking they have the wrong product – I witnessed this several times.  While an advertiser may like this disruption, the consumer is more likely to be frustrated.

I photographed the newspaper as it presents on the left with the Business Day insert out on the right to highlight the difference.

I am shocked that a publisher is happy to cover up the entire front page of  their newspaper in this way.  It is further proof that ads are more important than stories.  However, without stories, ads have no medium around which to pitch.

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newspaper masthead desecration

Warwick Todd book rips off newsagents

warwick_todd_book.JPGLike many newsagents I am sure we received Up in the Blockhole, a book by ‘Warwick Todd’.  Our margin is 30% – considerably below what it should be for a book.  It is also outside the range of book titles we usually carry – if only we were given the opportunity to say now.  The publishers of this book are abusing newsagents by accessing our channel.  They think they are doing a good thing giving us 30% instead of the usually 25% for magazines.  No!   This is a book.  If we are to carry it we should be supplied on the basis of a good book margin.

Network Services ought to have more sense than sending this to newsagents.  I received two copies.  Even if the margin was good, how am I supposed to tell a story with that?

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Book retailing

Is this Dirt Action magazine

dirt_action_nov09.JPGThe masthead of the latest issue of Dirt Action is covered by the printing on the plastic bag inside of which the magazine is sealed.  No wonder these bags get ripped open by browsers.  While the publisher could argue that regulars would identify the magazine through the bag, this is no good if they want to grow their readership.

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magazines

Wellbeing hides magazine re-launch

wellbeing_relaunch.JPGWellbeing magazine is re-launching with the new issue on-sale this past week.  They are hiding the re-launch issue in a sealed plastic bag – so much for encouraging browsing.  They are including in this bag an old issue – why do that? To compare the new with the old?  In some of the bags I received the old issue is only from two issues ago.  Hey, I paid to send these unsold copies back to Universal Magazines, the publisher.  Now I am paying to give them space to try and sell this old stock again.  The bag is too big to fit multiple copies per pocket.  This forces Wellbeing onto the already full flat-stack area.  Maybe the publisher is smarter than I think.

The best way to re-launch a magazine is to make it accessible – easily browsed – and to promote it for the future, not by looking back at the past.

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magazines

NETT# magazine blocks competition

fhn_nett_scrimping.JPGOkay, now I know how NETT# magazine gets to be “Australia’s #1 Small Business Magazine” – they block the competition.

The photo shows how the header their merchandiser has placed behind their title this week covers up another Australian business title.  This is disrespectful of the other title and disrespectful of the retailer.

Publishers need to understand that a good magazine department works on respect and co-operation and not by trying to block a competitor.

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magazines

Taking space from other magazines

fhn_health_smart_gloves.JPGHealth Smart from Reader’s Digest is pinching space from other magazine titles with their flag-like promotion for the free shower gloves which come with the current issue.  While this works for their title, it blocks the next title along.

Health Smart is fortunate to have funds for a merchandiser to visit and grab this space – with little regard for other magazines on the shelf.

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magazines

Too much hair

fhn_hair_nov09.JPGCheck out how the magazine supply model can work for newsagents:  Here are supply and return numbers for hair magazine from April – Supplied 3 / returned 2; 3 / 2; 3 / 2; 3 / 3; 9 / 5; 9  / 9 and now the last issue: 9 / 8.  Network servicers has this data yet they continue to supply a crazy quantity.  While they will say I can go to their website and adjust the numbers, I should not have to do this for a push model.  A good push model will respect the retail network and not have pull-like services for adjustment as we see today.  Don’t tell me to control what you control from the getgo.

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magazine distribution

Back to the future at Gotch?

fhn_gotch_overseas.JPGLike many newsagents I suspeect we received plenty of new overseas titles today.  Too many for my liking.  These are titles with high cover prices and with very limited appeal.  Titles like: Reef Life, Hair Showcase, Beautiful Baths, Film Comment, Romance Special and plenty more.

Newsagents don’t have the space or the cash flow to support new unwanted stock of the volume sent out today by Gotch.  We need a penalty process which protects the newsagent network abuse.

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magazine distribution

How is your customer service?

6a00e0097e4e6888330120a67c8d80970c-800wi.jpgClick on the image to read the sign shoppers see as they enter a Golden Casket agency (maybe a newsagency) somewhere in Queensland.  The photo is from the ABC Brisbane website – yes, the world gets to see how one retailer deals with customer queries.

While we are challenged daily with questions for which we consider the answers are obvious, cheerful customer service should be central to every contact with a newsagency.

The gap between the customer experience delivered in newsagencies is greater than the gap between us on most other matters.

Signs like this empower any marketing or franchise group in the newsagency channel which enforces customer service standards for businesses trading under their brand.  It is why some of these groups will stop representing themselves as newsagencies.

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Customer Service

What’s with Michael Jackson calendar discounting?

michael-jackson-2010-calendar.jpgI am shocked at the number of retailers, newsagents included, who are discounting premium calendars already.  We are not discounting in my newsagencies and are on track to excellent sales growth this season.

Take the Michael Jackson calendar – I have this in all six of my stores at full price and it is selling well.  This is in addition to the excellent pre release sales we achieved. Why a newsagent would want to discount this by 25% is beyond me.  There is no sense in giving away margin unnecessarily.

The Michael Jackson is a premium item, the market has not been flooded.  I can’t see any reason for the 25% off other than poor management.

There are plenty of newsagents making good money from calendars selling at full price.  These operators usually have an excellent value proposition around service and range. They rely on business-based points of difference as opposed to price.

Discounting calendars now is lazy.  While shoppers may like the saving, it does little for the long term health of the business.

Don’t get me wrong, discounting has a place in retail, especially for calendars. For me, this is after the New Year.  It takes guts to hold this line. As I have seen in my stores over recent years, the reward is worth it.

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Calendars

Damaged Delicious magazine

fhn_delicious_nov09.JPGThe card sticking out of the new issue of Delicious magazine is crumpled and torn with several copies, making the magazine look damaged when it is not.  Publishers sending magazines with cards sticking out like this ought to box them to ensure that they arrive in-store in a merchantable condition.

We will probably remove the cards because in their present form they will not help sales as intended.

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magazines

Chunky New Idea

fhn_fat_newidea.JPGNew Idea is chunky this week with the free sachet from Master Foods recipe base.  While I understand the preference of the advertiser, I’d prefer to give the gift away from behind the counter and thereby not damage the presentation of the magazine.

Like other newsagents I am sure, we have had to store half supplied stock in the back room.

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magazines

Pet porn?

pet_porn.JPGWhen I first saw this cat and dog magazine pack I wondered if it was some kind of porn.  That’s what the packaging reminds me of – plastic bagged, a black and white sign in front.  I was looking for the (R) Restricted logo.   Seriously, who is going to buy this product?  $9.95 is too much for a lucky dip purchase.  There is no indication of the quality of the publications or their age.  Whoever is responsible for putting this out ought to learn a thing or two about how to present product.

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magazines

How advertising can block magazine sales

fhn_alpha_bag_oct09.JPGThe latest issue of Alpha magazine is a good example of how advertising can get in the way of selling a magazine.  Alpha comes with a product catalogue.  This is too big to be inserted so it is bagged.  Alpha is a magazine guys like to browse.  I’d expect sales to fall since it is bagged.  Either that or bags will be opened, the magazine browsed and the product catalogue left for us to clean up. Alpha is not the only magazine doing this.

I wish publishers would watch consumer interaction in-store.  I am certain that if they did this they would realise that some titles should never be bagged.

The other issue here is the use of my space for a catalogue.  Alpha is double the thickness this month.  This means double the retail space.  Yet I am paid no more.  This disrespects newsagents and others who retail this title.

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magazines

Glamour hides the book

fhn_glamour_oct.JPGThe latest issue of the imported Glamour magazine, our yesterday, comes with a free novel.  The only indicator on the cover of the gift is a yellow sticker on the plastic wrap.  I can’t imagine this doing much for sales.  We address this by display the front and the back of the magazine.  We were luck to have the space to fix the publisher caused problem.  I want the incremental sales from the book gift.  The publisher has not thought the presentation through.

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magazines

Notebook magazine hard to display

fhn_notebook_oct14.JPGThe latest issue of Notebook magazine, out yesterday, is a challenge to display because of the free illuminater gift bagged with each copy.  Instead of the usual three or four copies per pocket we can only fit one.  The odd shape of the box makes flat stack display a challenge too.  The challenge of packaging this size gift is obvious when you see the number of damaged boxes.  These devalue the magazine. This is frustrating because we want to present professional looking product.

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magazines

NANA promoting politics book?

stench_parliament1.jpgI was surprised to learn that NANA (NSW newsagent association) is promoting (but not endorsing – according to them) The Stench in this Parliament by Ruth Richmond.  Check out the flyer here.  That it has been sent seems like an endorsemeent.  If NANA is receiving a fee for access to the newsagency channel it needs to disclose this – not the quantum of the fee but that a fee has been paid.

If NANA is not receiving a fee, I’d ask why they have become involved?

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Ugh!

Soccer balls in newsagencies?

soccer_merchandise.JPGWe received 10 soccer balls today from Gordon & Gotch in one store and 15 in another.  The packaging carries ANF endorsement.  I knew we were getting soccer product because I saw it on a list of new titles I approved earlier this week.  Had I known they were actual soccer balls I’d have said no thanks.  I don’t want to sell soccer balls.  They do not fit in my newsagency.

I have no space at the counter for these even though they come in a counter unit.  Ugh! We currently have tweleve counter units and only two spaces for their use.

Soccer fans will know they can get brand name balls at sports stores.  They don’t think about buying these at newsagencies – unless there is a major advertising campaign to drive traffic.  Given that the ANF represents only 33% of newsagents, the endorsement is of dubious value. The ANF is engaging in an area which has nothing to do with an association.

This is not a smart promotion.  For it to work properly, there needs to be a narrative built around the offer.  This is done by bringing several products together with professional collateral to support the offer.  This has not been done with the soccer balls.

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Newsagency challenges

Model Orbiter partwork

model_orbiter.JPGThe Model Orbiter partwork launched today. Actually, launched is not the right word.  We received stock but no collateral.  You can’t promote new partworks without collateral.  I am sure there will be an excuse.  It is not good enough.  Collateral should arrive with the stock as this is when we allocate space and have resources for creating displays.

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magazines

Why is the ANF sponsoring a soccer TV show?

anf_sponsor.jpgI wonder how many newsagents are aware that the ANF sponsors the Goal of the week on the football stars of tomorrow  TV show and website.  The sponsorship is poorly executed in that there is no explanation on the website about the ANF or newsagents, there is nowhere to click to get to the ANF to get this information and it is based around a logo which the majority of newsagents do not use.

Maybe I am missing something but I cannot see the value to newsagents in this sponsorship.

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Ugh!