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

News Corp. undervalues newsagents with House of Wellness freebie

Screen Shot 2016-03-10 at 10.38.36 amNews Corp. is paying small business newsagents twenty cents per copy of The House of Wellness freebie handed out.

News Corp’s expectation is rooted in decades of history with our channel, history that is not so relevant today.

While some newsagents will like this type of campaign, most will not, they will see it as an annoying activity they have to undertake in the face of concerns at how News Corp. may treat them if they refuse.

For the twenty cents per copy, News Corp. expects newsagents to:

  • Receive the product and store it for up to a week it ready for the promotion date.
  • Put up promotional posters. Install promotional shelf wobblers.
  • Have the freebie on hand at the counter for give away.
  • Collect tokens from customers handed for redemption from customers who have not purchased the newspaper from the business.
  • Deal with freebie seeking customers who tend to be more demanding than people who actually spend moey with you.

If this issue of The House of Wellness freebie is like the last issue, it is an advertising catalogue.

In my opinion, the twenty cents per copy is disrespectful. It does not provide reasonable compensation for what is expected. It is not a socially responsible payment from News for what they expect of newsagents.

My other concern is the disruption to the business promoting something of little or no relevance. The posters and wobblers are visual noise distracting from higher margin products newsagents can sell. We need less noise and not more.

Newsagents who will hand our the freebie might consider doing so without the posters and wobblers. I can understand that. Others while choose to not engage at all, and I can understand that.

News Corp. needs to be more respectful of newsagents in structuring these marketing activities for its clients. They need to price fairer compensation for newsagents. Otherwise, fewer newsagents will participate and, I suspect, more of the freebies will end up in the trash.

18 likes
Ethics

This newsagency front window lets the business down

IMG_7429This newsagency front window faces a busy capital city street. It represents a missed opportunity. In this city there are many magazine outlets – newsagencies, supermarkets and convenience stores. This low margin product window display is not pitching a point of difference.

If I had this shop I would be promoting unique and high-margin product to attract passers-by into the business – rather than using the valuable front window as a billboard for products readily available in many other retail outlets nearby.

Some people will complain about this post, saying I should not criticise a newsagent. Being silent does not serve the needs of our channel or this business. Staying silent is like giving up.

We can to do better than this photo shows.

18 likes
magazines

Being responsible for the card department in your newsagency

Picking up on my post yesterday about what Coles is doing with Hallmark in its supermarkets, I write today to call on newsagents to exert more control themselves over the card departments in their own businesses.

It is unfortunate card companies for decades have taught newsagents to rely on them for management of many aspects of the card department from fixtures to layout to visual merchandising to even secondary card locations in-store. I think this strategy was all about grabbing and retaining real-estate in retail newsagencies. Newsagents, short on capital, often agreed.

What we require today is different because retail has changed, online and offline. You can see card companies changing to suit, but not enough in our channel.

Our shops are our shops. Responsibility ultimately lies with us. Too often newsagents point to a card company if sales are down and while they share the responsibility, they alone are not responsible.

We choose our suppliers, the location of cards, the total space allocated, how they are managed in-store, how employees interact with cards an more.

We are responsible.

It is up to us to manage card company relationships to best serve the needs of our businesses. We are better served to do this if we don’t owe them any money for capital works or investment.

At the heart of our decisions needs to be facts … as in business data, our business data, sell through data. This data should come from our systems and not from the card companies.

Dealing with facts can be difficult as the facts may contradict the personal relationships built up over many years in our businesses. This is where it can get tough. But you must not allow personal relationships to get in the way of facts.

For their part, card companies need to engage more actively with the newsagency channel as we offer them the best opportunity for commercially valuable growth in this marketplace.

If only there were enough people in the card companies with small business retail experience to see this.

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Greeting Cards

Gordon and Gotch update on transition

Here is an update for newsagents from Gordon and Gotch on the transition from Network Services:

Thank you for your assistance and support in executing a successful transition and integration of the NSC business.

Calls to GGA

  • As you can imagine, there has been an increase in the volume and length of calls to our National Contact Centre. We appreciate your patience as GGA staff work through the calls.
  • As an alternative to calling, please email us at contactus@gordongotch.com.au
  • Nexus and Connections Agents are reminded that there is a special queue for them in our Contact Centre, so be sure to select Option 3 from the menu at the outset.

Transition titles and returns

  • The list of 92 transition titles are available at www.gordongotch.com.au/ggweb/XITChangeover.aspx
  • The data to allow returns for these transition issues to GGA was generated over the last two weekends .
  • If you have attempted to return one of these transition issues before Friday 4thMarch, you may have received a message on your returns acknowledgement stating “Title/Issue Code Is Not Valid For Any Product Invoiced To You”. If this is the case, please try again this week as your request would not have been processed.
  • If you attempted to return one of these transition issues on or after Friday 4 March 2016 and received a message stating “Title/Issue Code Is Not Valid For Any Product Invoiced To You”, YOU WILL NOT NEED TO RE SUBMIT THAT RETURN ENTRYas your request would have been processed automatically on Monday after the second batch of data was loaded.

Physical returns

0 likes
magazine distribution

The changing Coles supermarket greeting card model

IMG_7447I noticed this new Hallmark branded greeting card offer last night in an inner suburban Coles supermarket I check out every week or so. What is new is the two spinners at either end and the twenty-four pockets of $2 cards in the middle top tier of the unit.

The investment by Coles and Hallmark in this new approach demonstrates a focus by Coles in the greeting card category.

While some in various card companies will say we should not concern ourselves with Coles as a competitor, my view is this latest move in Coles shows we have to lift our own game in-store.

It is wrong in my mind to say Coles sells to a different card shopper. People may buy cards at Coles at different times but these people will also buy from newsagencies, at different times. This is why I am concerned about the Coles move, especially what appeared to be a stronger focus on the $2 cards.

We have to look at refreshing our own card offer.

Fixtures on the walls of most newsagencies are tired. They are the usual rake of pockets on the wall with cards laid out in the common way of birth to death and, often lifestyle in its own space. While some of us have experimented with full-face and integrated, not many newsagents have.

I think the newsagency greeting card approach today is pretty much the same as it was twenty years ago because card companies have not invested sufficiently in considering display alternatives for our channel and because too many newsagents have not taken initiative for themselves.

This has to change if we are to pursue and achieve card sales growth. We need to be more aware not only of Coles but of others in this space, especially kikki.K, Typo and the speciality businesses in the space.

I am tracking double-digit card sales growth  year on year. I know others tracking excellent growth too. So there is good news out there in newsagencies. I suspect this growth could be intensified if we are even smarter in our card offers, if we play way outside what has been traditional for us.

I urge newsagents hearing about the Coles move to not get angry as that would be futile. Get even by pursuing a more current model card offer. Do this by managing the category for your success. Be demanding of yourselves and your card suppliers. That Coles is innovating with Hallmark is business. We need to respond in a business appropriate way.

Footnote: What I saw at Coles this week reminded me in part of a display a saw when I visited the Papyrus showroom at the Atlanta Gift Fair in January this year:

IMG_4226

 

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Greeting Cards

The problem with ATO newsagency business benchmarks continues

Screen Shot 2016-03-08 at 8.45.07 amAnother newsagent is being audited by the ATO as their ratios fall outside the ATO published benchmark. The problem is, the newsagent has not done anything wrong. They have not under reported income, employed people off the books or done anything to warrant the audit. Their only ‘crime’ is submitting end of financial year numbers that do not fit the ATO narrow model.

This poor business is now penalised with an expensive audit – for which the ATO will offer no compensation, even when they find the business has done nothing wrong.

It is appalling the ATO sets its benchmarks without reasonable industry consultation and triggers an audit without justification other than a comparison with their benchmarks.

An ATO audit of a business that has not done anything wrong is a further tax on the target business. For a small business using external accounting services the cost can be considerable. This is why I say the ATO ought to refund the real cost of complying with the audit request, so the ATO is financially responsible for its actions.

If they ATO had to pay for wasteful audits it might be encouraged to revisit its benchmarks and thereby trigger less unwarranted audits.

The problem with thenATO is they do not engage on any rinsable level when you try and discuss anything like this with them. They are your worst nightmare government bureaucracy. There is no consideration that they have done anything wrong and always a presumption of guilt, especially when it comes to small business.

I urge newsagents to read through the entire benchmark page and see whether you fit within the ATO expectations.

11 likes
Newsagency benchmark

An insight from the publisher of Lunch Lady and why we should not early return this title

I have been talking with the publisher of Lunch Lady magazine and through this gained an insight into the impact of early returns. Please do not early return this title as it is highly sought after and because it will sell right through the on-sale.  This is a title through which you can promote your point of difference as a magazine specialist.

It started with the sharing of this post by a Lunch Lady fan on Pinterest:

Screen Shot 2016-03-07 at 9.23.01 am

Here is the original post launching issue #2. You can see the support for our channel here.

Screen Shot 2016-03-07 at 9.23.50 am

Here are comments from the original Instagram post. I urge you to read them:

hellolunchladyHAPPY LUNCH LADY NEWSAGENT DAY ! 🍾🍾🍾 Here’s a short story about launching a magazine that I didn’t once know. When you send your magazine to a newsagent they don’t always put it on on the shelves, there are times they put it back in their store room and send it right on back to you. True story. BUT the more ladies/men/kids/dogs who mention Lunch Lady to their local newsagent, the more chance she has of finding her place on a shelf. Lunch Lady is launching in newsagents TODAY, so swing by your local and pick her up and if you can’t find her, ask for her. If your local newsagent doesn’t have one email us office@hellolunchlady.com.au and we will see what we can do about it or check our stockists page – link in profile. Post pictures if you find her and tag so we can see where she has landed! #indiepublishing #askyourfriendlynewsagent

#lunchladymagazine (thanks Daylesford Newsagent for your amazing support!)
view all 60 comments

verylittlewing@misstoryb yay! So excited to check it out! Xxx

bowievalentineI just went into the newsy at Sorrento they didn’t have it so she’s going to order some 💪🏽

mrscutlassWent to my local yesterday, Morayfield, had them look it up and realised I was a day early. They popped one aside for me overnight! Something for me to look forward to once both littles are napping 😊

pingdiniHooray! Will have a look in Castlemaine.

janegrover_Wonderful x

kaitlynhoughAwesome, got one at Castlemaine newsagent @pingdini

sweetpeadarlingheartOh, I’m so jealous! I will have to resist – I’m still waiting for my copy on the post @hellolunchlady xx

poppyandmustardI was lucky enough to manage to pick one up yesterday! My newsagent must’ve had theirs out early. I’m totally not complaining though 🙂 My 18 month old has loved both issues now and carries them around the house with her everywhere. I must take a pic 😀

scrapkinsellaPleeeease also ask at your local health food store !! It’s a fantastic magazine that needs to be out there.

shannonhowAny stockists in Hobart @hellolunchlady ?

ash.foodieThat is true, I work in a newsagent.. Must be frustrating for you

middleaisleRight between the new idea and women’s weekly!! 😂 Lunch lady winning! 👏🏼👏🏼

fawn_tastic@hellolunchlady I kept bugging my local agent until they got it. I mean I was in there twice a week telling them about it. Now they stock it!

hellosugarlace@milkthieves have you got the 2nd edition in? Xx

daitchesonI bought mine yesterday at Mount Ommaney in Brisbane. It was still in the shopping trolley right at the bottom. The lady was lovely and dug it out for me. I told the lady behind the counter about it and she was going to buy it as well. Your book is fantastic and I love it. Well done.

pingdiniThanks, @kaitlynhough!

alex_willcocksIs there a gippsland newsagents that has it stocked?? That you know of???

dianaberruecosIs this available in the US? I was just about to buy it online and then saw the cost of shipping 😳. It is more than the cost of the magazine.

possumagik@ange_nicholson @denisehaslem

justfordaisyI’ll be checking @hellolunchlady is there someone sticking in the Illawarra or Southern Highlands, NSW?

As I noted, please do not early return as doing so can damage the whole channel to the people who are supportive of this title.

10 likes
magazines

Tower Systems offers newsagents a new newsagency software acquisition option

My newsagency software company Tower Systems has launched a new option[1] acquiring newsagency software, a pay as you go model. Here are the details of the announcement as published by Tower:

The time is right given changes in the channel with newsagents sourcing new products, pursuing new traffic and leveraging higher GP. Thanks to our work with gift, homewares and other specialty retail channels, Tower Systems can help you transform your business.

$220.00 a month is all it costs to access the Tower newsagency software package. The $220 is paid by credit card. Stop paying if you want to stop using the software.

We make this offer now as we think some software companies are considering quitting the newsagency channel. You can see this through their lack of engagement with newsagency specific development, non-attendance at trade shows like the Sydney and Melbourne Gift Fairs and lack of engagement in the structural changes in the channel.

Developing software and backing it with good support for newsagents is expensive. A software company with less than 500 customers will struggle to keep up.

1,755 newsagents use our software – our closest competitor has 600.

We have experience switching from POS Solutions, Computerlink and AccessPOS to Tower.

Pay as you go customers have access to weekly online training workshops, 130+ professional training videos, software updates, our friendly help desk, our after hours support team, our theft check service and our business performance assessment service … for no extra charge.

If you have current hardware, the only up-front cost is for installation and training. This new pricing option saves capital, it eliminates the need for a lease or bank financing.

You will see from the simple agreement that you can turn it off at any time and not pay a cent more. You are in control.

Come and see the software and meet our team at our user meetings – details enclosed.

THE TOWER NEWSAGENCY SOFTWARE

For $220.00 a month you can use our newsagency software covering:

  1. Point of Sale, tailored specifically for newsagency business use.
  2. Magazine Management, scanned returns, early returns prompting.
  3. Stock control including stock take, reordering and supplier links.
  4. Customer accounts including Lay-By, book-up and statements.
  5. Home delivery including run list management, subscriptions and more.
  6. Loyalty including points accrual, discount vouchers and other facilities.
  7. Business performance reporting – printed reports you can rely on.
  8. XchangeIT support: electronic invoices and returns.
  9. Support for supplier EDI files including Sands, Hallmark and more.
  10. Theft mitigation. Tools to help you detect and stop theft.

SUPPORT AND TRAINING.

Included in the low monthly fee is access to the extraordinary Tower AdvantageTM service:

  1. Live, Australian based, help desk support with newsagency experienced help.
  2. After hours support access through an extensive mobile phone network.
  3. Software updates as released.
  4. Access to more than 130 software training videos.
  5. Access to more than 600 Knowledge Base articles with step by step instructions on how to use the software. This is better than a manual.
  6. User meetings around the country with free training and management help.
  7. Weekly online, live, training workshops.
  8. Weekly user support email with tips and advice.

BUSINESS MANAGEMENT HELP.

Tower Systems is there when you need, helping with advice, insights and guidance as much or as little as you want. These services include at no extra cost:

  1. Theft Check. A professional, police investigation quality, check of your business data to uncover potential employee fraud.
  2. Business check. An analysis of business performance as reflected in your business data – looking for growth and other opportunities for the business, helping you see what you may be missing in your business.

The time is right to make this offer as only Tower Systems has the capacity, commitment and vision to help newsagents leverage best-practice technology in a valuable and unifying way. Let us help you.

NOTE: Here is our response to any competitor who comments that this offer sounds desperate: – it would if it was coming from a company with 500 or fewer customers that is not growing. Tower Systems is strong and growing. We serve 1,755 newsagency businesses. We are making the offer because we have the capacity to and because we have a vision for a bright future.

[1] All existing purchase options remain available for newsagents installing our software.

Note: I was not going to write about this here but feel I have to because of the misleading information published by POS Solutions on their company blog. Their Subscriptions blog post followed the Tower announcement. It contains inaccuracies not only seemingly about the Tower offer but also Xero and other pay as you go offers. It also neglects to address the mandatory annual fees situation. Note – Tower does not charge mandatory fees. Reading this post and others from them it is as if they would prefer to trash others rather than innovate for themselves.

13 likes
newsagent software

The time is right for partworks publishers and Gotch to treat newsagents differently

Screen Shot 2016-02-15 at 1.48.20 pmWith only one significant magazine distributor now, the time is right for Gotch to do things differently – and I think the company will. One such area of difference ought to be with partworks. Those of us who commercially appreciate and leverage partworks to their full potential for our businesses ought to be treated differently than those who treat them as another magazine.

I am sure we can provide greater sales certainty for the UK publishers, Gotch and our collector fans.

In one of my newsagencies we had to gift to get the new DC Comics Graphic Novel Collection. We received 5 copies. I was in a remote newsagency in Queensland a week ago and they received ten. Whereas we treated it as an event, connected with related product we sell, this other newsagents had it placed in with magazines with no special support.

I understand the frustration with partworks and the supply model and that this gets newsagents being frustrated with partworks. Allow partworks experts / specialists better attention and allocation support and the UK publishers and Gotch will soon see the network grow and sales beyond the first few issues stabilise as more of us will confidently promote putaways and that is where we make good money off of partworks as their loyalty facilitates loyalty to our businesses in other departments.

We have the technology in our shops to provide the distributor and publisher certainty for the supply model.

Now is the time for us to act on this.

Yes, I am advocating some newsagents are treated different, better, than others – based on their commitment. They treat partworks differently than others so let’s see this encoded in distribution practices.

IMG_7392With TV commercials on for partworks promoting us, we are reminded of the launch investment of the publisher and the opportunity for publisher / distributor / newsagent to agree a more equitable approach.

There is so much more that could be achieved for partworks. From where I sit, the biggest barrier is the will of the publisher to engage.

If you hate partworks, I get it – they are not for everyone. Please don;t attack those of us who love partworks and the traffic surge that flows from a TV campaign. This post is aimed at those who hate them getting less and those who love them having more control over what they get.

10 likes
magazine distribution

Sunday newsagency marketing tip: a store within a store for school holidays

IMG_7223I love this cubby house I saw within a toy shop in Sydney recently.  Kids see it and they run to it. They know it is there for their pleasure. Newsagents focussed on toys and other items for kids could create something similar for school holidays and promote it outside the business in the local paper, to parents groups and on social media. Having this in-store will change the feel of the shop and make your kid focus clear.

8 likes
marketing

Too many old school suppliers to the newsagency channel still don’t get it

The newsagency channel has changed … because retail has changed because how people shop has changed because how people get news and information has changed.

Too many of our old school suppliers don’t get it. They think they can continue pay party commissions, expect premium space and expect us to focus on them ahead of where we make our real money.

Too many old school newsagents don’t get it .. you know, those who run their businesses as they did 10 and 20 years ago are in businesses with no future. these are the businesses closing, as they should.

Newsagent associations don’t get it. They focus on old school stuff and try and copy proactive marketing groups for new stuff.

I have spoken with three newsagents today who are being treated badly by suppliers because they are putting the needs of their businesses ahead of individual supplier needs. The newsagents are being smart. The are building stronger businesses from which the suppliers will most assuredly benefit yet the suppliers are too arrogant and stupid to see this. They think they can demand the newsagent serve them ahead of everything else.

My suggestion is if a supplier is being too demanding, beyond the value of the return of their products for the business, quit the supplier. Be done with them. This is true for any supplier including magazines and newspapers and lotteries. You own your business. The needs of your business have to come first.

And if you are paying association fees expecting the ANF to work on these issues for you – save your money, back yourself instead.

19 likes
Newsagency management

Lotterywest launches retailer development workshops

I like this retailer training initiative from Lotterywest. The only enhancement I’d like to see is for the training to be available online – but still live to facilitate lower cost engagement.  Here is their announcement

Last week we made an exciting announcement to our retailers in our weekly e-newsletter InTouch, about the launch of our Lotterywest Retailer development workshop program.

The program has been introduced to provide retailers and their teams with regular professional and business development opportunities during the year. We’ve chosen topics based on feedback retailers have shared with us over the last six months.

Take a look below to see what’s on this year.

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Workshops are for owners, store managers and staff. Meet our workshop presenter, Danielle from the Chamber of Commerce and Industry Western Australia (CCI WA) who we’ve been working with to customise the workshops to best suit the business operations of our retailers, whilst providing practical skills, knowledge and tools to enhance workplace performance.

3 likes
Lotteries

mUmBRELLA on how to drive magazine viability

Miranda Ward writing at mUmBRELLA has represented newsagents well in our fight with supermarkets on magazines.

I am pleased to see this quote from me as it is a message publishers need to get.

“Supermarkets treat magazines as a commodity. Newsagents continue to range the category as specialists. That has a higher cost for us yet we are not respected for this.

“The MPA needs to reconsider its focus on newsagents as the specialists as the current situation is a band aid approach that does not serve them or us well.”

While the current MPA newsagent only competition is good, it is not a strategy to revitalise magazines in our channel and for all Aussie publishers. No, to do that, we need to be respected for the specialists we are – as I have written before. If publishers do that, newsagents will reinvest in the category and, I expect, the dangerous sales decline of recent years will slow.

The current promotion is a tactic. What is needed is strategy. The MPA is not currently demonstrating an appetite for developing a strategy with and more newsagents.

15 likes
magazine distribution

How much time do you spend training staff in your newsagency?

This is a boring topic that many will tend to not read. Please resist that thought. Employee training is important. Employee training can help you save time, reduce theft, increase sales and retail good employees.

Through my newsagency software company I see data on engagement by retailers and their employees on a comprehensive free online software use training curriculum. The curriculum includes more than 130 videos structured into topics based on work role, live online training workshops and other activities.

Ranking seven different retail channels, newsagency businesses rank the lowest for using the free tools. Garden centres rank the highest, making the most comprehensive use of the free training resources.

I am not talking here about a large time investment. Some training videos run only five minutes.

Through engagement data I can see some businesses put a new employee through between an hour and three hours of training, earning the employee a certificate and ensuring a level of competency. This matters if training is not done and mistakes are made that cost the business money.

Regardless of the software you use, my sense is that an employee working 30+ hours a week in a newsagency ought to undertake at least twenty hours of professional development a year to improve their skills and their value to the business.

I’d note my suggested 20 hours is lower than the 2% the federal government suggested years ago for employee training annually.

Hour much time do you invest in formal employee training or professional development each year?

10 likes
Newsagency challenges

Celebrate Life Easter message

IMG_2762The newsXpress Easter collateral this year follows last year’s subtle and loved approach.  The colour change and the message of Celebrate Life guides appeal for the collateral for a season that can be hard to pitch. This photo is from my shop yesterday.

Customer comments are terrific.

3 likes
newsagency marketing

News Corp. newsagent remuneration review for Victoria

News Corp. today announced the results of its remuneration review for distribution newsagents.

  1. An increase in the home delivery fee newsagents are permitted to charge home delivery
    customers they bill for each News publication

    1. Metro agents: increasing from $0.205 per copy to $0.2081 per copy incl GST
    2. Country agents: increasing from $0.2563 per copy to $0.2601 per copy incl GST
  2. An increase in the amount they can charge home delivery customers as a
    postage/administration fee

    1. Increasing from $2.00 to $2.30 incl GST
    2. This can only be charged on each customer invoice if the customer elects to receive their monthly invoice as a hardcopy rather than electronic

It is appalling that a supplier can dictate the fees a small business can charge for such a labour intensive service.

Newsagents, the service providers, ought to be able to charge what they like. But, the system is the system and those in the system entered it knowing the terms.

The fee increase is disrespectful and socially irresponsible.

Victorian distribution agents looking to save money ought to consider quitting VANA, the local newsagent association as VANA is clearly not able to help them on the single most important matter, fair and equitable remuneration. Further, it has never been able to help them. Save the fees and reinvest in your business and you will be better off.

14 likes
Newspaper distribution

A fresh looking magazine offer from WH Smith

I had a good look at the magazine department at WH Smith in the Sydney International Terminal yesterday. It is impressive, far superior to what you see in WH Smith stores in the UK. Whereas in the UK they use old unwelcoming fixtures and support them with mediocre lighting, in Sydney I saw fresh fixtures you hardly notice supported by good lighting.

Here are photos. The first is of the back wall. This is what drew me in. 210 magazines. Full face display. Deep pockets negating the need for a waterfall to hold stock.

IMG_7232

Here is business and current affairs.

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Here is home and travel.

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And here is an overall view for context.

IMG_7236

While I would not allocate this much space in a more competitive situation than an airport terminal, I do like what WH Smith has done here. I hope the photos provide inspiration to newsagents considering shoplifts.

Note, not one of the fixtures is purpose built. All can be clipped in and clipped out. This is vital for any fixture in a newsagency business today.

8 likes
magazines

Credit Suisse update on Tatts

Credit Suisse has this morning issues an update on Tatts Group that newsagents may find interesting.

Tatts was unsuccessful in retaining its A$540mn pokies licence refund after the High Court upheld the Victorian Government appeal. Tatts must also pay 20 months of accrued interest and legal costs which we estimate to be A$50mn.

I wonder if media coverage of the Tatts High Court loss will be as strong as when they won. I recall some media outlets were savage toward politicians. Will they now apologise for this? I doubt it as it would not serve their political purposes.

1 likes
Lotteries

The curse of sale or return in the newsagency channel

The next time a supplier representative offers you a product on a sale or return basis, ask for more information. Ask your buy price if you take it firm sale. Ask whether other retailers with the same product are offered sale or return.

I am not talking here about product such as newspapers, magazines you’re your main card range. No, my interest is more with gifts and related items, new card spinners and toy related items.

I label sale or return as a curse because too often I see it stop retailers being retailers, managing a product on the shop floor for maximum performance – because if the background is the knowledge they can return the product if it does not work.

I think a sale or return offer makes retailers lazy. I think suppliers offer it because it is an easy to get a product into a retail business and once there it is more likely to stay.

Compare how you treat sale or return product with firm sale product. I sell plenty of retailers treating the two differently. Firm sale product is worked hard, pushed to sell through, to achieve the necessary return on inventory, space and labour for the business. This makes sense since it is your money at risk.

With sale or return, it is easy to consider that you have no risk. Without risk, where is the pressure. While some retailers will work sale or return product hard, plenty will not and this is why I say it is a curse.

Sale or return is not a benefit. I see it most often as a lazy tactic used by some suppliers because their product is not good enough to support a firm sale approach.

To newsagents I say: take the challenge of being completely responsible for your buying decisions. Chase better deals from firm sale. Work the product hard. Drive a faster return. Look at products differently as a result.

13 likes
Newsagency challenges
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