I like the grouping together of value packs of magazines I saw in a newsagency I visited earlier this week as is intensifies the visual impact of the value offer. The placement is a smart move by the newsagent involved.
The pack thickness of the packs is an issue – it is hard to get more than two bags in a pocket.
The Paper Towns themed gift with purchase of Girlfriend magazine is well targeted from what people in the target demographic tell me. This branded gift needs to be put in a spotlight to use it to drive purchases of the magazine by those who might otherwise not regularly do so. We have it in front with the full cover on show. FYI Paper Towns is a popular movie out now.
We are having success with this placement of New Idea One Pot Dinners with newspapers. While we have it with food titles and New Idea itself, it is this placement with newspapers that has worked best for us of far.
On 17 March last year The Newsagency Blog posted a release from Matt Handbury and his exit from any involvement with Hubbed and confirming his resignation as a director as Hubbed. He also said that he was yet to be repaid the funds he had extended to Hubbed for a consideration of a 51 per cent shareholding in Hubbed which was never forthcoming.
Handbury has made the following comment to The Newsagency Blog:
As newsagents have been informed over the past week, my new company blueshyft is launching a software and hardware platform through Nparcel to facilitate the introduction of new suppliers in the parcel delivery and cash payments businesses to newsagents.
blueshyft is the product of a deep investigation of the most effective and profitable execution of this new revenue stream for newsagents. My abortive experience with Hubbed may have left me out of pocket, but my involvement with that venture and the analysis and development subsequently undertaken by my team at blueshyft has only strengthened my conviction about the unrealised potential of the Australian newsagency network.
Given that legal proceedings have been commenced by the Deputy Commissioner of Taxation, I do not wish to comment on Hubbed, other than to record that since January 2014 I have not had confidence in the management of the company. My involvement with the board and management of the company came to end in January 2014.
I have continued to be deeply dismayed by the serious overlooking by publishers, in particular, of the value of newsagents as a critical part of adaptation to the digital economy.
I believe blueshyft is the first fully researched platform to address this issue. Hence our adoption by Nparcel and partnership with XchangeIT.
It would cause me great sadness to find that my deep commitment to the newsagency industry – particularly on the back of the history of our wonderful business relationship established during my ownership of Murdoch Magazines – is misinterpreted in the light of my costly and frustrating involvement with Hubbed.
I am convinced that the Australian newsagency industry will regard blueshyft as a true pioneer and a valuable partner for all newsagents, helping take their rightful place at the centre of retail business in the evolving on-line retail space and the digital economy. See www.blueshyft.com.au for details on my new business and its offering to newsagents
After the Toowoomba Chronicle ran the story about a newsagency closure, they ran a poll asking people if they visit a newsagency at least once a week. It’s a dumb question in my view, too narrow in focus. Embedded in the question is the suggestion people visit newsagencies less than they used to. As I noted, this is a clumsy question in my opinion.
51% of respondents said they did visit at least once a week. We don’t know how many responded – making the results useless. There is no sense in this survey.
APN and the folks at the Toowoomba Chronicle ought to have thought more carefully about how they could help newsagents rather than asking the ill-considered question they asked.
They could have spoken with newsagents in Toowoomba and discovered for themselves how they are transforming their businesses. There are some excellent stories of newsagency growth in the region, stories of new traffic helping to recast newsagency businesses away from traditional and into new areas.
Maybe the good newsagency stories are not news because they do not focus on newspapers.
Reporting on the closure recently of the Mercer and Windley Newsagency on Ruthven Street in Toowoomba, the Toowoomba Chronicle let the newsagency channel down. They have done a soft piece that fuels wrong assumptions about the newsagency channel.
This newsagency should not have closed. The closure is the fault of the business owner.
Sure newspaper sales are declining and lottery sales are moving online. These are not new trends. A smart newsagent would have seen the trends and planned for them, changing the business to attract new traffic.
I am offended by the story as it does not reflect the story of many newsagents yet to lumps us all into a single basked, that our businesses are dying, that we ought to expect it and that the end is wistful.
Nonsense.
Newsagencies do not need to close. Those that do close do so because either the newsagent cannot get a reasonable rent arrangement to justify trading or because the newsagent has not positioned the business for growth into areas of new traffic.
I am grateful to the newsagent who drew this story to my attention.
Shame on APN and those at the Toowoomba Chronicle behind this story – you have let the entire newsagency channel down.
If you feel closure is the only option for your newsagency, there are options, steps you can take to turn your situation around. It takes hard work and you will get push back from some traditional suppliers. The result could be a turnaround that protects your investment.
The convenience model is one some Australian newsagents have embraced and one I know others are considering.
By convenience I mean a shop offering tobacco, candy, ready to eat food, lotteries, newspapers, top selling magazines and other high traffic everyday items people purchase locally or on the go.
Convenience businesses are strong in Australia. IBISWorld says there are 8,000 outlets although I am not sure what criteria sees a business counted by them.
I am not a fan of the convenience model as a model to be adopted by newsagents for the whole of the business for these reasons:
Bottom line: newsagency businesses are too small and too under-resourced to compete with the players already well established in the convenience space. I am certain newsagents cannot win against the power of the slurpee and the might of Coles and Woolworths.
Another point to make is convenience relies on traffic for transport tickets, lotteries and tobacco. The first two and migrating online and the third is in stead decline.
There are far more opportunities through which to evolve our businesses where the competition is less powerful, less organised.
While I acknowledge there are newsagency businesses successfully trading under a convenience model and others will successfully enter this segment. The purpose of this post is to speak more broadly to the consideration and to encourage those considering it to be careful and thorough in their considerations.
Convenience is the business model most preferred by newsagents in the UK. However, walk down the high street of a town and you could see three or more convenience outlets from a supermarket group all competing with the local newsagent. That’s a battle an individual un-aligned newsagent will struggle to win.
What you do in your business is 100% up to you. You have to own your decisions as much as you have to own your position. My opinion should not matter to you any more than one person;s opinion to go into the mix of all you take on as you consider the future model of your business.
I have written about convenience today because it is big decision. You have to commit big time. It would be expensive to retreat.
The Gift HQ trade show in Brisbane over the weekend to yesterday afternoon was terrific. Many suppliers I spoke with were thrilled with the business they did.
The fair attracted retailers from a mix of channels: newsagents, jewellers, garden centres and gift shops. Newsagents were there in good number. There was plenty of new product on show for Queensland businesses that cannot afford to fly to Melbourne of Sydney.
I hope this trade show continues. It is easier to digest that the much bigger fairs.
I was asked by a newsagent recently to help them exit Hubbed as they were encountering challenges in achieving this for themselves. For those not aware of Hubbed, it is a parcel service promoted to newsagents by Hubbed in partnership with and endorsement from the ANF.
Resolving any issue starts with the paperwork from the start of the relationship. I can see the newsagent has a relationship with Hubbed Pty Limited, ACN 159 190 833 and ABN 28 159 190 833.
A check of the ASIC (Australian Securities and Investment Commission) website shows that a series of changes in 2014 including: October 10, 2014, Hubbed Pty Limited changes its name to A.C.N. 159 190 833 Pty Limited.
The next ASIC entry is: June 2, 2015. The ATO commences winding-up proceedings against the company that was Hubbed {Pty Limited lodging a Form 519. The ASIC website shows that matter is still pending.
This is important for newsagents wanting to exit Hubbed as it goes to the status of the entity with which you contracted and whether any interest Hubbed or related entities had in your business has been transferred or sold to any other entity. There is another entity, Hubbed Pty Limited, which was called A.C.N. 600 398 178 PTY LTD until October 8, 2014. The last activity on ASIC registers for that company are on October 17, 2014.
I am posting this here to seek help from others who may have more information that could help newsagents in relation to their Hubbed relationship.
In a newsagency I visited this week I got into a discussion with a shopper about the two different loyalty offers side by side. The customer said the $10,000 offer from Pacific was more appealing because I can see the opportunity. While there are rules and some hoops, the prize opportunity is clear whereas with the Bauer promotion headline is get rewards but then I have to get the app – placing more barriers to entry for the browser. I don’t understand that offer the customer said. This conversation was unprompted – I kept my bias for the more easily understood promotion to myself.
The posts I have published today reflect data from one newsagency. The newsagent sent me the screen shots as evidence of the appalling oversupply they are suffering and have been suffering from Bauer’s Network Services.
While the company reps say one thing to the ACCC and have the ANF under their spell, the company does this month after month to small business newsagents.
No wonder newsagents continue to scream abut oversupply.
No study is needed to stop tis behaviour y Bauer. They are in control.
Look at this evidence of Network Services increasing supply of Motor magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses. The actions from Bauer indicate something different. No wonder newsagents early return.
Shame on Bauer.
Look at this evidence of Network Services increasing supply of Harpers Bazzar magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses. The actions from Bauer indicate something different. No wonder newsagents early return.
Shame on Bauer.
Look at this evidence of Network Services increasing supply some issues back of Belle to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help them grow their businesses. The actions from Bauer indicate something different. No wonder newsagents early return.
Shame on Bauer.
Look at this evidence of Network Services increasing supply of Empire magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses. The actions from Bauer indicate something different. No wonder newsagents early return.
Shame on Bauer.
Look at this evidence of Network Services increasing supply of Good Medicine magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses. The actions from Bauer indicate something different. No wonder newsagents early return.
Shame on Bauer.
I posted about the cute Frizzies from ty on Facebook last week and achieved more than 600 likes and plenty of comments in a couple of days. One person commented that a Frizzie looked like a selfie of their friend Luca. Other friends joined in. I responded with an offer of a free Frizzie for Luca. The Frizzie is in the post even though he’s in another state.
This simple engagement on social media humanised the business and took us from being a business to someone having a chat with friends talking about us – kind of the way you might in the real shop except this was only and with people who have not shopped with us before. The interaction encourages those in the thread to notice us, remember us and realise we can be fun in such discussions.
We need to be as engaged and human online as we are in-store. In fact, more so as online they have even less to go on about who we are. Facebook is a terrific platform for this engagement.
In the two weeks leading up to the end of the financial year I saw more newsagents engage with their business data than for the other 50 weeks of the year. Through my newsagency software company I saw questions about stock management, stock-takes and the like all demonstrating an engagement as business owners scrambled to have accurate year-end data ready.
Sadly, for many immediately after June 30 they will leave data pretty much along for another 50 weeks.
I sad sadly as attention to data pays dividends.
I urge newsagents to be serious about data all year round. Stop being afraid of a bit of extra work caring for data. It may show you what you need to make your business worth a few more bucks.
Use your software company. Ask for their help. Seek out training. Set rules in your business and demand all who work with you to follow the rules.
At the Gift HQ trade show that opened in Brisbane today, two large stacks of Women’s Weekly magazines were available for people to help themselves for free.
The photo shows one stack before the show opened. The other was as large.
There was no sign explaining the context of the giveaway.
Here are Apps I suggest newsagents try to understand competition and improve their shopper experience:
While it is late notice, July 4 is Independence Day. If you have any American customers it could be a god day to quickly dress the shop in red, white and blue. Even without American customers it could be a bit of fun – if you have time this morning. I like the idea mainly for the bright look it can bring to a cold winter’s weekend (in some parts of Australia at least).
Australian city themed jigsaw puzzles featured on the front of Toy and Hobby Retailer magazine from Ventura Games should sell well. Jigsaw sales are soaring. Newsagents can do better than toy shops in this space. Toys were strong in newsagencies decades ago. As many toy shops have closed responding to pressure from majors, local toy retail opportunities have opened for us.
In addition to the Australia Post partnership with 7-Eleven offering parcel pickup lockers and Mailman, the parcel pickup lockers within Officeworks, newsagents looking into this ought to research Amazon Prime as they offer (in the US) a similar parcel pickup service.
I met with someone from Amazon recently who said the consumer interest in the Amazon Prime lockers was far exceeding expectations.
This parcel space serves many different needs and has engaged interest from some large players – all factors newsagents need to consider when looking at any parcel option with a capital cost.
Melbourne radio station 3AW today apparently covered the story of Westpac withdrawing from newsagencies to Australia Post. I did not hear it myself. Some colleagues called me about it. I can’t find any reference to it online.
While I understand the Westpac decision, how they are going about it disappointing and not in a manner I would expect from a bank that says it cares about small business.
Gift HQ is a terrific trade show in Brisbane starting tomorrow. I am one of eight speakers speaking on business development and growth topics. I am sharing New Loyalty insights. Anyone visiting Gift HQ who would like to catch up let me know: 0418 321 338.