Star Wars and magazines
At the front of the newsagency, facing into the mall, we have a large range of Star wars product including this placement of collectible items and Star Wars themed magazines. It is driving excellent traffic for us.
Another take on the future of print
This story about print from The Onion is worth reading.
VANA takes action on Hubbed and reveals the hotly contested area of last mile delivery in Australia
VANA, under their parcel brand of Nparcel, yesterday sent out an email to newsagents claiming the ANF endorsed and promoted Hubbed is ‘piggy backing’ off the VANA platform. Yesterday’s email was a follow up to an earlier email. yesterday’s email was explicit in its allegations:
Further to our previous communication regarding other providers piggy backing off our industry platform (CLICK HERE), we are of the understanding that a parcel provider (HUBBED) is allegedly continuing to solicit our members.
As advised by our members on multiple occasions, it is alleged that the above mentioned company may be sending out free hardware without obtaining authorisation from newsagents.
Upon further investigation, we have discovered that their assertion of free hardware and no cost may be misleading. In reality, it appears the hardware is linked to a repayment structure whereby newsagents forfeit approximately 50% (capped at $100.00) of their monthly commission as they transact over time.
While this looks like a commercial dispute between Hubbed and Nparcel, it could also be seen as a dispute between the ANF and VANA in that the ANF launched Hubbed into the channel long after Nparcel was established by VANA. Further, I think the ANF launched and endorsed Hubbed on the basis of a commercial relationship. At the time I asked ANF representatives to outline the due diligence of parcel platforms on behalf of newsagents. From what I understand, none was undertaken.
Hubbed has had a rocky road with the ANF reportedly handing back their share of the business but continuing to support and promote Hubbed. Matt Handbury, an original investor in Hubbed quit the company and, as I understand it, remains in dispute with them.
Hubbed took on a new investor this year in the form of Singapore Post through their Quantium Solutions taking a 30% share.
In the meantime, newsagents have contacted me saying they are unable to get out of the Hubbed contracts as promised by the ANF.
The ANF and VANA need to deal with this mess and deal with it in public view of all newsagents. However, I doubt that will happen. If the ANF follows their usual playbook, they will say nothing, ignoring the whole issue. Their lack of transparency on these types of issues is a well practices game.
While the newsagency channel contracts, it is ridiculous that the two largest industry associations, who claim to be partners, take such a different approach on parcels. That they do speaks to a split in leadership, a split that costs newsagents.
The directors and VANA and the ANF need to explain to newsagents why they allow this split, this competition between the associations, to continue for along as it does it provides another example of why newsagents should to fund the associations. For all their rhetoric about unity in service of newsagents their actions speak to other focus.
For the record I think parcels are not core to the future of a newsagency. While they can play a role, the traffic they generate is not as valuable as plenty of other new traffic newsagents can generate. Associations ought not involve themselves in any commercial activity. Rather, they should spend their time on representing newsagents on policy and other traditional association matters.
Footnote: I have no commercial interest in these businesses or any parcel business.
Promoting magazines as Christmas gifts in the newsagency
I have been asked to post on this blog more examples of how I use Facebook to promote the newsagency, especially everyday items like magazines that other retailers sell.
Here is a post I have put up this morning for newsXpress Knox. It is not a blatant buy me pitch. Rather I have gone for a simple statement of fact – to connect with those buying for fans of crosswords.
Sometimes we have to show people what to purchase and for whom.
This post is a good example of one to boost on Facebook (to pay to reach more people through) – to reach people who may not otherwise purchase crosswords from you.
Note the use ninth post of four square photos – showing range. I think this is important when promoting a magazine category. Using square photos is also important given how Facebook places them.
Newsagents the best retailers for premium pens
Christmas is the best time of the year for the newsagency channel to shine for the sale of premium pens. Shoppers think of newsagencies first for these ideal Christmas gift items. We need to leverage the opportunity – online and in-store.
I am promoting premium pens on Facebook – reminding our customers and others locally that we are the destination retailer for premium pens.
This is an example where a small spend online can generate traffic at Christmas and remind people of products for which we are the ideal destination retailers.
Being able to serve this opportunity depends on good buying and and practical placement in-store to make the most of the opportunity.
This post is a reminder: place your premium pens in an ideal location and pitch them on Facebook.
Roadworks not the ideal Christmas gift for retailers
I feel for the retailers in Hawthorn in Victoria – a few kilometres from the city, including the local baker, butcher, newsagent and gift shops, that were affected by the major road closure at the weekend. While pedestrian access was possible, it was challenging.
This past weekend is considered by many retail experts to be the most in the Christmas period for the destination purchase. While from here on is busy, this is usually to serve last minute shoppers. The second-last weekend is, they say, the busiest for the more thoughtful shopper.
The businesses on either side of the major intersection were I’m[acted for two full days, denied important shopper traffic, offered no support, no assistance. For some, it cost many thousands of dollars in sales in the busiest time of the year.
Councils, public transport businesses and others responsible for infrastructure and access need to be more thoughtful in their decisions to impact access as has happened here. I see it too often right around Australia – poor decisions being made, works taking too long … retailers being impacted with little regard to the cost to the businesses and the families that rely on the businesses.
Be wary if anyone who calls you and ask you to load software or to go to a website
Someone passing themselves off as being from E-Pay or Touch or some other newsagency supplier is calling newsagents this week asking them to load software or asking for log in details for your Touch or E-Pay accounts. While they sound legitimate, they are not. This is a scam. Do not fall for it.
Never load software or follow the directions to a website given by someone over the phone unless you know for sure the person you are speaking to. Be suspicious. For example, if someone from your newsagency software company calls and asks you to load something, get their name and tell them you would like to call them back.
Usually, asking the name and number of the person will see them hang up.
Not following this advice could cost you thousands.
Your school booklist competition
Officeworks is pushing even harder for back to school business for the kick-off of the 2016 year with extensive marketing already for their BTS service. In addition to advertising, they have flyers, posters and other promotions – including this flyer at the counter and on noticeboards. While newsagents are focused on Christmas, Officeworks is aggressively chasing Back to School commitments. FYI newsXpress launches its in-store Back to School promotion later today.
Leveraging the magazine gift with purchase
The Pacific Magazines Nexus marketing support program provides newsagents with advance notice of any gift with purchase. Included is collateral we can use to drive sales of the supported title. The latest issue of InStyle comes with a $25 tube of Ren body lotion. Promoting the offer with this collateral from Pacific is one way we can drive traffic to our businesses. Using this on your business Facebook page is the smart move.
There is excellent evidence of sales growth for businesses that leverage the free to use Nexus marketing tools.
Crumpled Miranda and Harper’s Bazaar
Check out the state the latest Harper’s Bazaar arrived in one newsagency yesterday. Crumpled. The damage to the spine and across the cover makes copies unsaleable, for the premium fashion magazine that it is.
Massive Star Wars interest driving new traffic for the newsagency
I thought interest in Star Wars products could not increase, but it has. Star Wars Itty Bitty characters are very popular. The new traffic generated by promoting these cuties is a reminder of the importance of licenced products in the newsagency. Shoppers love them.
Growing Christmas sales in the newsagency with special orders
It is a special order Christmas for us with plenty of orders for customers. Shoppers can see the orders – promoting the special order service, giving customers confidence we have them covered if they want something we do not currently have in stock.
This process of showing off what is usually in a back room works with LayBys too as it shows off the popularity of products – and popularity drives popularity.
In the case of LayBys and special orders, having solid management processes is key – to save time on managing them, ensuring accuracy, delivering consistent customer service and maximising the shopper contact opportunity.
When National Newsagent magazine writes positively about a supplier
Newsagents who rely on ANF publications like National Newsagent need to know content is primarily advertorial and not written with the journalistic standards you may hope for. Coverage in National Newsagent or other ANF publications should not be seen as endorsement – yet to many newsagents it is.
Sunday newsagency challenge: trust no one
- Have systematic processes in place to check cash, inventory and hours worked.
- Make catching employee theft easy.
- Make detecting shopper theft easy.
- Systemise your processes to eliminate shadows and corners.
- Rely on facts and not gut.
Trust no one.
A newsagent discovered the employee they trusted the most had been stealing $300 a week for two years. This went undiscovered because they did not use the tools at their disposal that provided evidence of the theft.
Trust no one. This who respect you will want you to have strong management practices in place – to prove their honesty.
Sunday newsagency marketing tip: have a coffee with a magazine
Grab a magazine you sell, that you enjoy and is not available in supermarkets. Grab a coffee, or some other favourite beverage, and sit out the front of your shop or at a table in your shop for a read.
Hopefully, people engage with you while you engage with a product you sell. At the very least they see you loving something you sell.
Sunday newsagency management tip: find trends before they find you
If a supplier is pitching a trend to you it is often too late to achieve the maximum potential from the trend as the supplier will be pitching to other retailers as well.
The best trend to discover are those yet to hit around your business. The best way to spot these trends is to engage online and outside you business with groups likely to spot trends. This is where Facebook groups, LinkedIn groups and Twitter trendsetters are good to follow.
Thanks to technology today we have wonderful opportunities to spot trends overseas long before Australian suppliers have products available.
Trends that find you are not as profitable. Look at adult colouring. The newsagents who made the most were ahead of local suppliers.
Promoting magazines from the newsagency on Facebook
Newsagents often ask how to promote magazines on facebook other than saying out now. Here is an example of the type of post I like. It is one I loaded this afternoon. You can see I am trying to appeal to those worried about the weight they gain over Christmas and those who like to look at nice bodies. It’s an attempt and being light-hearted.
If you want to connect with Millennials in your newsagency
A survey funded by Nestlé Purina has found cats are the pet of choice for many in the millennial generation. Close to half of 1,000 survey respondents in the millennial age range (18 to 34) said they own cats.
Many also reported that they believe their cat is similar to themselves, considering their personalities to be independent, yet social. 57 percent of millennial cat owners said that their cat is as important in their lives as their friends, and two in five consider their cat to be their “best friend.”
While this is a US survey, it is being taken seriously by pet products retailers in Australia. Newsagents ought to consider the survey if they want to connect with Millennials. There are plenty of cat products we sell and can sell: calendars, diaries, magazines, cards, social stationery, gifts … plenty.
Offering products that appeal to a passion of a section of the community is good for business.
Terrific window display in Ballarat
I love this Christmas window display by one of the team members at newsxpress Middle in Ballarat, Victoria. It is inspiring as it creatively pitches a range of products for Christmas in a level of visual merchandising often only seen in major retailers.
I like that the display includes the tatts promotion on the side, maintaining the promotion obligation but doing it in a way that works with the stunning Christmas centrepiece.
Also, see the Christmas cards in the display. Showing how people use products they can purchase from you will absolutely drive sales.
I am told plenty of customers are commenting on the display. This is inspiring.
What does your Christmas window look like?
Is selling body parts innovation?
In Hong Kong this week I found these packs of Freddo frog faces for sale, packaged for Christmas.
Is this marketing innovation – to pull apart a loveable chocolate treat treat and sell off parts. What is next, Freddo legs? Frog’s legs are a delicacy so I guess we need to expect them.
Seriously, though, what is the point of this other? While I am not the customer, I don’t get what they have done here and why.
Harry Melbourne, the 18 year old chocolate moulder from Australian who invented Freddo in 1930 would be turning in his grave.
Appalling editorial from the Herald Sun
People at News Corp. must think Australians are idiots with their continual spin against state and federal labor parties. They pass off as news made up headlines and stories. Yesterday’s Herald Sun front page story was typical News Corp. nonsense. It is a headline driven by the Auditor General’s report into the East West Link. I have read the summary of the AG report and listened to and read several news stories. Only the Labor hating News Corp paper saw the story this way.
The Herald Sun coverage is not news, it is biased and unprofessional.
News Corp needs to stop expecting newsagents to be the pushers of their brand of politics.
Footnote: this post is about the editorial content only, not the circulation people or processes.
Newsagents do have a competitive advantage over major retailers
It is easy to say we small business newsagents cannot compete with major retailers like K-Mart, Target, Big W and others. While we do not have the buying power or the capacity to fund deep discounts, we have one advantage we can leverage to be competitive with the majors.
Our advantage is that we can be nimble. By this I mean we can choose when we do things – and timing can be everything.
Take this Star Wars R2D2 interactive robotic droid. K-Mart went out early with a low low price. Now that they are out of stock, we can offer the product for a good margin and achieve excellent sales.
The movie is a week away from launch and the publicity machine is in full flight. Right now is the best time to sell this R2D2 at the suggested retail price. So that is what we are doing, as part of a large in-store commitment to the Star Wars licence. We have products from five suppliers, three of whom do not usually deal with newsagents.
Our strategy of holding off our main promotion until just before the movie launches is working in-store and online. K-Mart going out early and at a low price for the hero droid product is not harmful.
All we need to be successful with an opportunity like this is between one and two weeks, the right one or two weeks in the context of the calendar followed by the majors. It’s a blue ocean opportunity – offering the products after the majors have sold out and enjoying a relatively competition-free marketplace.
This is one way we can leverage being nimble to compete with the majors. It is the type of activity the newsagency marketing groups can drive for their members – leveraging buying deals, sharing marketing plans of the majors and helping their members make the most of the opportunities that appear in cracks in the plans of the majors. Indeed, it is a valuable benefit of being in a group as especially shown through the Star Wars engagement.
Thank goodness for last minute shoppers as they are the ones who make these timing opportunities work for us.
Sales numbers reveal an early start to Christmas in the newsagency
Christmas kicked offer for us around a month ago. Looking back on the first four weeks, there is a terrific sales bump, providing confidence that this year will see a good increase over last year. The increase is primarily in cards, ornaments, gifts and special interest items.
Retailers often talk of when Christmas kicks in. This year, for me and many I talk with, it has been an early start … for which I am most grateful.
AFR reports on Tatts and the next Victorian gambling licence
There is an interesting report in The Australian Financial Review today about the expected applicants for the new lotteries licence in Victoria coming up for grabs soon. While the expectation is tatts will retain it, it is interesting to read about the other companies and their at least having a crack at the opportunity.
The duration of licences is a factor newsagents ought to consider when assessing capital investment in lottery branding.
How can Coles offer half price Bauer Media magazine titles?
Coles Express is promoting half price Bauer Media magazines: Woman’s Day, OK!, NW and The Australian Women’s Weekly.
This extraordinary deal is available with any fuel purchase, yes, any fuel purchase. The AIP says retailers make around 5% on fuel sales so they can’t be funding this deal.
While I understand there is a difference between the magazine shopper in a newsagency and someone buying a magazine, this type of promotion encourages shoppers to expect to purchase magazines at half price. I say this because the campaign is running for two months. People purchase fuel, say, weekly. This campaign has the right triggers and is running long enough to educate the weekly magazine shopper to switch from their current retailer to the Coles Express outlet.
I think the only way to see this campaign is to drive people to choose Coles express for their weekly magazine purchase. Sure, there will be some incremental business – but I doubt this will amount to much.
Weekly magazine shoppers are not as loyal as they were – because of price games like these,
I’d love someone from magazine publishing or distribution to tell me that I am wrong, that this two month long half price campaign for the Bauer titles is not designed to change shopper behaviour like I suspect it is.
This supermarket chain campaign is the type of campaign I hate to see. It makes us look expensive. Hell, we are expensive when we charge double for these participating Bauer titles. Where is the sense in that?
Based on a network size of 650 stores and considering the titles involved, allowing for conservative sales numbers, I’d expect this campaign to have a cost of at least $15,000 a week in terms of what is being given away. Whoever is funding this must be expecting a return on this investment for the titles being promoted.
With newsagents selling close to 50% of all magazines sold in Australia, why run a campaign that makes them look expensive compared to Coles?
Would Bauer fund a campaign like this in newsagencies? If they want us to grow magazine sales they would as they would want us to be seen as competitive.
My supermarket contacts say they expect Coles Express will make full margin on all titles if this campaign is run in the same way other magazine campaigns are run. That would make it an expensive for whoever is funding the campaign. I would love to see that level of investment made in selling these magazines in newsagencies.
What do others think?