A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Ugh!

Who owns the newsagency?

australian_business_solutions_merch.JPGWithout reference to our magazine maner, store manager or myself as the business owner, a merchandiser visited and moved Australian Business Solutions, placing it in the premium location usually reserved for BRW magazine.

It is this type of move which annoys me and many other newsagents.  Not only have they increased supply, they have made decisions which only I and my team should make.

Having someone walk into your business and make a change like this without permission is a violation of what should be a respectful relationship.  Publishers treat each other dreadfully.

I am sure the merchandiser will have an excuse, probably that they spoke to someone.  They did not speak to the three people in the business with authority.

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magazines

Magazines, newspapers and red dust

The dust storms of two days ago are causing challenges for some newsagents this morning with magazines and newspapers being delivered covered in red dust.  It seems that some delivery trucks were not cleaned out properly.

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Ugh!

Ugh! More diary subscriptions!

subs_diaries.JPGThe photo shows more magazine subscriptions being pushed through diaries associated with the magazines. While I understand that subscriptions are part of the publishing model, I am not happy that they use diaries in newsagencies to take business from us.

News Magazines are the worst culprit at the moment with discounts of up to 58% off Gardening Australia, Inside Out, Country Style and delicious.  What makes them worse than others in-store at the moment is their use of insets in diaries and their blatant pitch. I have seen at least one other diary offering a subscription but without a massive discount and not using an insert.

Diaries from magazine publishers are not provided to newsagents for what I would call a commercial margin. They ride off the back of the magazine supply model. I can make twice as much from diaries I bring in under fairer commercial terms.

So, magazine publishers use magazine relationships to place diaries in newsagencies on terms which are favourable to them. They then use this cheap placement to try and get newsagency customers to buy magazines direct from the publisher.

A smart publisher would work with newsagents on a subscription plan and offer fair compensation for the up-sell effort. We have the technology to offer this today. I know of plenty of newsagents who would be happy to sell subscriptions.  They’d also be happy to offer a discounted putaway service in return for a long term up front commitment.

Using diaries to take business from newsagents lacks foresight on the part of publishers. They should support this valuable channel and not treat it with such disrespect.

Publishers diverting revenue from newsagents risk looking back one day and wondering what happened to the newsagents?  Respect us and we support you.

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Diaries

The fake $50 note

50.JPGThis is a photo of a fake $50 note presented (and accepted) in one of our stores. We have kept it to show staff so they can compare to the real note and be more aware of what to look for. It is one thing to list what to look for in a fake note and another to place this is a pile of $50s and have them spot the fake.

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Ugh!

Check your Notebook diaries

Inserted in the front of the 2010 Notebook diary is a subscription flyer. Subscribe and save 28% on a 1 year subscription to Notebook magazine it proclaims.  Publishers do this all the time and I usually let it slide.  Using a low margin diary supplied on mediocre terms this is poor form by the published against newsagents.  The flyers in the Notebook diaries in my newsagencies have slipped out.

Our channel is a valuable resource.  Suppliers ought to respect this in their actions.

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Diaries

Expensive Nurse Diary

nurses_diary.JPGWhat will newsagents sell the 2010 Australian Nurse Diary for?  $11.95 which is the RRP or $15.00 which is the retail price for the copies supplied through Network Servcies? Network has invoiced me at 71% more than the cost price from my direct supplier.  The margin on the Network price is 36% and the margin on direct supply 53%.

Network runs a much improved magazine distribution model.  Their handling of fringe opportunities such as diaries and calendars needs work if newsagents are to be seen as competitive by consumers.

If I relied on the Network supply of the Nurse Diary I’d be seen as expensive compared to other retailers.  Newsagents are already considered as expensive by consumers.  We need to push back on this and source products on terms which permit us to be seen a competitive.  The push model of magazine distribution for non magazine products does not help us be more competitive.

We need to make our own success.

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Diaries

Australia Post extends the definition of postal services

While best practice around the world is the open competition for the postal service and retail post offices being dominated by, well, postal services, successive governments in Australia have allowed and even encouraged the 100% government owned and protected Australia Post to compete more with private enterprise.

Yesterday’s news that Australia Post is to sell insurance is more evidence of selective interpretation of what is permissible under the Act which governs Australia Post.

Let me declare my interest.  One of my newsagencies is directly opposite a government owned Australia Post shop.  Here, the federal government directly competes with me for stationery, greeting card, ink and toner, book, calendar and other sales.   Government owned post offices have no role in taking more and more business from private enterprise.

Australia Post benefits from government protection.  Their retail outlets get rent deals, special landlord treatment, better buying and cheap access to customers who have nowhere else to go for the right to stand in a line for mediocre service.

I don’t blame the Australia Post executives.  They are probably on a nice bonus scheme.  This is a policy issue which can only be fixed by politicians.  That they refuse to even consider the issue demonstrates their lack of care for small business.

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Australia Post

Ugh! Harold Mitchell

Someone needs to tell Harold Mitchell that next time he wants a magazine he should go to a newsagency.  We are the magazine specialists.  Supermarkets are the shopper challenge Harold describes in his article in The Age today:

MAGAZINES are in the news, so I headed off to the supermarket to get the latest. It’s another world in there.

Last summer I managed a four-wheel-drive track through the Australian Alps with just a satellite navigation device.

But a supermarket! More aisles than fire trails. And all I wanted was a little reading matter to have with my traditional breakfast porridge.

Harold is an advertising guru.  He should know that advertising is about reaching consumers.  More magazines are sold in newsagencies than any other retail channel in Australia.  We also provide a better shopping experience for the magazine consumer.

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magazines

Western Digital falls out of Macworld

mag_inserts.JPGComputer company Western Digital may find the campaign they are running in the latest issue of Macworld magazine does not result in the success they had forecast. Most of the flyers in copies of Macworld sent to us fell out when placing the issue on the shelves. While inserts often fall out, my experience with the Western Digital ads is the worst I have seen. It seems to me that the inserts were too heavy. And, no, I didn’t put the inserts back in.

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magazine distribution

A fat 4WD Action magazine too big

4wd_action_magazine.JPGThe latest issue of 4WD Action magazine from Express Publications out today is fat.  We have to allocate an additional pocket (not justified), keep stock out the back (time consuming) or jam it into the available space as shown in the photo (not a good look).  Express Publications are the masters at sending bags stuffed which take up space and which often contain old issues which are perennially reissued to make the pack feel more valuable.

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magazines

A reason to not blog

A merchandiser handling one of my newsagencies was sent in by her boss, representing a magazine publisher, with an instruction that we need to take down one of the posters we have placed vertically when the it was designed for horizontal placement.  I am told that her boss also did not like that the poster was covering stock.

Here are the facts.  The display works.  The last four displays done in this way have generated good sales for us.   As for covering stock – yes, guilty.  However, the hidden stock is extra from what is on display in the appropriate location for the titles.

Any supplier taking issue with any display I publish here should contact me.  My number is 0418 321 338.  My email address is mark@towersystems….  Unless I note otherwise, the displays I publish here are done by me.  I am happy to be directly accountable and not have one of my staff cautioned by an intermediary.

I am a good retailer.  Leave me to do my job.  I want what all suppliers should want – the best sales possible.

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magazines

Violating my retail space

pop_science_ugh.JPGMagazine merchandisers can be frustrating.  Too often, they move titles around and take liberties with our retail space.  Take the header card a merchandiser put in place to promote Popular Science in one of my newsagencies.  This blocks our coproate image header card.  I think, but cannot be certain, that they moved Popular Science to above the science magazines.  We usually have Scientific American in the top two pockets – to beacon brand the serious science segment.

We have told merchandisers they are not to move anything, change anything or put up displays without permission.  When they ignore this they disrespect our business.

Ugh!

I understand that publishers want to drive sales of their products.  The best way for them to do this is to partner with newsagents in a business like way rather than by taking over part off the business.  In the case of Popular Science, we have beeen told to place this title with men’s interests.  This is where we have most stock. a pocket in the science section is part of our ownco-location strategy.  Cursiously, the merchandiser did not violate our Men’s interests area display.

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magazines

The price of a magazine pocket in Canada

From Mag World, a Canadian publication on magazine retailing:

According to Shepard, a primary magazine pocket at a Gateway newsstand in the TTC has a list rate of $11,500 per year. The company’s most expensive location is Toronto’s Union Station, which sells primary pockets at annual rates anywhere from $12,000 to $30,000.

Read the article from which I lifted this quote here.

While I understand there is a considerable difference magazine retailing in Australia compared to Canada and a difference in transit retailing to high street and shopping centres, the numbers quoted make you think about the value of our retail locations.

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magazines

Some newsagent suppliers hold back sales

Some suppliers get in the way of achieving sales in newsagencies because of their rules about how and where they want their product displayed. I wish they would trust that I want what they want – their products sold as quickly as possible. Having a go at a newsagent because of a breach of the rules and with no regard to the sales achieved disrespects the role of the retailer.

It is extremely frustrating and demotivating to be treated as a process worked by these suppliers. They need to understand that newsagents have more financial risk in selling their products than they have as employees for the supplier.

Some days, I want to yetll, get out of the way and let me be a business person.

their excuse is that not all newsagents will do the right thing.  So, their response is to treat us all as the lowest level.  We miss out.  They miss out.

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Newsagency challenges

Poor parenting on show

A young girl, probably around six or seven, sat on top of the Australian Women’s Weekly flat stack on the weekend clumsily flipping through a copy of New Idea, licking her fingers before turning each page.  The girl’s mother was standing across from her asking when she will be ready to get on with the shopping. The girl told her mother she was busy.

The mother could see the girl was disrupting a busy part of our newsagency.  Her look to me was one of what can I do?

I am sure that this scene plays out every day in newsagencies and other retail businesses.   It is a scene of poor parenting in my view – the child is disrespectful of my property, disrespectful of fellow shoppers, rude to her mother and being a brat overall.

I didn’t say anything because the shop was busy, I was serving and I didn’t want to make a scene.  In hindsight, I should have at least left the counter and asked the girl to get off my stock.  Actually, the mother should have done this.  Indeed, she should probably have stopped the girl reading New Idea.  I have nothing agaist the title but do feel it is not ideal for a six or seven year old.

While the whole scene played out in a few minutes, it weighed on my mind for a couple of days.  I wonder if parents today do let kids get away with more today than previous generations.  The mum was clearly controlled by the child.  Back when I was a kid…

At least the mother was there.  We are regularly used as a creche by parents who have to stand in line at the Post office opposite or mums who go next door to have their nails done.

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Ugh!

Bagged magazine trash

fhn_trashed_magazine.JPGThis photo shows what newsagents often contront as a result of customer frustration with bagged magazines.  The bag is torn open and left to mess the area.  It damages the newsagency and the magazine itself.  Publishers like newsagencies because of our browser traffic yet they often block browsing by bagging titles.  As for the free magazine in the bag – with so many titles offering these I suspect the value proposition is lost.

I published this photo in response a question from a publisher on another blog post about bagging magazines.

I doubt we will ever be able to stop back issues being bagged with the current issue of a magazine.   I at least hope we see a reduction.  There must be better ways to promote magazines.

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magazines

Old imported magazines

fhn_old_tennis.JPGThe US Tennis magazine which came in this morning features a Wimbledon preview.  It is out of date already.  There is a case for magazines with dated content to be air-freighted. Out of date magazines like the current issue of Tennis make us look out of date.

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magazines

Kevin Rudd is no Michael Jackson

fhn_jackson_rudd.JPGThe extra copies of the special Michael Jackson issue of Time we were billed for was actually the regular issue featuring Kevin Rudd.  Kevin won’t sell what we could have sold of the Michael Jackson issue.  This is a frustrating mistake from cash-flow and lost sales perspectives.

UPDATE:  This has been fixed – and in time for is to get the extra sales!

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magazines

Bagging the magazine difference

fhn_bike_mags.JPGThe folks at News Magazines need to sort out their retail strategy.  Using the same bag for two different titles, as they have done this month for Two Wheels and Live to Ride, will confuse consumers.  Check out the photo.  One challenge is finding the title – as this is blocked by the printing on the bag – both titles look the same.  Another challenge is seeing (or not) the difference between the two titles.

I’d expect this common bag to hurt sales.

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magazines

Out of space for Luxury Kitchen & Bathrooms magazine

fhn_kitbath_jul09.JPGUniversal Magazines is not showing signs of learning from the frustration expressed by newsagents about over-supply, long shelf life and heavy returns costs last year.  Take Luxury Kitchens and Bathrooms released yesterday – UM already has significant space allocated (for a long on-sale period) in this low volume category.  Now, we have to find room for this title.  Another long on-sale.  What happens when we have no room?  Early return is the answer from the distributor.  The challenges with early returning are the freight cost and the delay in accessing the refund.  They, universal and NDD, bank on newsagents keeping the title until it is due for return.

Once again, newsagents become the bank, funding UM and the titles they decide to publish.

I am disappointed that promises made last year by Universal Magazines about how they will work with newsagents have not been acted on.

yes, I know Universal will be upset at what I have written.  I doubt they will go to the lawyers like the did last year.  Fix it people, treat newsagents as business partnersd.  Treat us with respect.  We have a finite amount of space and cash with which to fund your business model.

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magazine distribution

Newsagents act on Quadrant magazine

Newsagents are taking action against Quadrant magazine and its shoddy treatment of these small business owners used for the retail and distribution of the magazine.  I have heard from many who are now refusing to carry Quadrant on their shelves.  Some are writing to the Chairman of the Quadrant Magazine Ltd Board of Directors – Elizabeth Prior Jonson.

We are used to publishers spruiking subscriptions in the pages of magazines they sell.  Quadrant goes beyond spruiking in the latest issue of the magazine – they put down newsagents.

Quadrant, like around 65% of the magazines newsagents sell, is cash-flow negative for us.  It is a titled we carried (literally) to support range. I suspect they will soon discover the cost of their public ridicule of the newsagent channel.

FOOTNOTE: The last maagzine to so blatantly attack its retail partners was Fisherman & Boatowner in 2007.  See what I blogged back then.

UPDATE (1530): Crikey.com.au covered this today.  Hopefully it brings more attention to the issue.

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Ethics

Missing a poster for the newspaper

fhn_age_poster.JPGWith another generic poster supplied for The Age today we have decided to promote Women’s Health.  I refuse to put up a poster which reads: THE AGE ON SALE TODAY.  The Women’s Health poster promotes the issue out today – two magazines in one so there is good reason to feature this.

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magazines

The fading Atomic magazine

Our sell-through for Atomic computer and technology magazine was 28%.  It is loss making for us.  I checked out the magazine website and was surprised to find little connection to the magazine, nothing driving retail traffic or sales.  Computer titles are challenged enough without publishers ignoring opportunities to drive retail traffic.  Put us on the website, promote the magazine, run promoting to drive traffic to newsagencies.  We give you space – returning the favour is the least you can do!

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magazines

Missing Gordon Ramsay

gordon_ramsay_missed.JPGGordon Ramsay is in town and you can’t miss him – in the newspapers and on radio.  I am disappointed that we don’t have magazines with Ramsay features to promote.  A cover or two on the weeklies or on food titles would have worked a treat given his ability to grab headlines.  Yep, a missed opportunity by editors.  At least the editor of the Herald Sun understands the opportunity.

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Ugh!