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

Newsagency of the Future workshops added: Geelong, Perth, Gold Coast

I have added more dates for the Newsagency of the Future 2015 workshop series:

  • Geelong. Thursday June 18 @ 1pm. (To allow for magazine work in the morning.) BOOK HERE.
  • Cairns. Saturday June 20 @ 9AM.. BOOK HERE.
  • Perth. Tuesday June 30 @ 10am. BOOK HERE.
  • Gold Coast. Wednesday July 1 @ 11am. BOOK HERE.

I promise a challenging and worthwhile couple of ours together as we explore what we know, what might be and what we can do about it.

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newsagency of the future

Is the Adelaide Advertiser soon to cease printing some days of the week?

Newsagents and others involved in newspaper distribution in South Australia are hearing reports that the Adelaide Advertiser will cease its print edition on one or more days of the week in response the financial return on those days.

One source is reportedly a representative Advertiser Newspapers who has spoken with newsagents.

While I expect such a move to happen, not only in Adelaide but elsewhere in Australia where the economics demand, I note we have heard this report previously and News Corp. denied it previously. I mention it today as the report is fresh from this week and I thought people would like to know.

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Media disruption

Warm up your newsagency this winter with optimism

Winter is here. It’s months before the next major traffic generating season. Now more than ever we need to make our businesses appealing. This week I’ll share some tips.

Practical ideas to warm up your newsagency this winter with optimism.

  1. Create a display of the warm feeling products you sell: affirmations, angels, positive message cards, positive message mugs and signs.
  2. Talk optimistically about the business.
  3. Share stories of Optimism on your Facebook page.
  4. Create a wall of Optimism and ask people to share their stories publicly.
  5. Create a feature of happy magazines around the theme of optimism.
  6. Setup a pin-board for people to show photos of optimism.

This idea is hard as it is more about mindset and storytelling than anything else.

The optimism in our businesses starts with us.

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marketing

Supporting the 3D Create and Print partwork launch

IMG_4509We are promoting the 3D Create and Print partwork launch with this display on the lease line, facing into the mall.

The display is capped with a 3D printer provided by the publisher through Gordon and Gotch as part of a newsXpress promotion for this launch. The items in the front of the were created in-store using the printer.

The 3D printer and the printed items add good theatre to support the launch.

This partwork launch is an excellent opportunity for our channel to connect with 3D printing, making is more relevant to those into this as a hobbyist. I am running a facebook promotion to reach way outside the shop to attract shoppers who could be interested in 3D printing and locking in for this series.

I appreciate there are challenges with partwork supply. Almost every time I track this down the source of the problem is the publisher and not the distributor.

I remain a supporter of partworks in part because of the traffic they generate through TV and other campaigns.

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magazines

Free offer from New York Times

digitalI am seeing more newspaper publishers offering more aggressive offers for digital access. The latest in this push from The New York Times being promoted through Twitter. I signed up and sure enough I have free digital access for eight weeks.

I declined the 99c offer to extend out to 12 weeks as I want to see what they do at the end of 8 weeks.

Publishers are on a race to the bottom with these offers. This is why discussions about other models to fund professional journalism are vital. A health democracy depends on strong independent journalism. The financial model at the core of this for more than 100 years has collapsed.

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Media disruption

Mark Latham doesn’t get it: size doesn’t matter to small business owners

Mark Latham loves to goad people into debate. This is what Fairfax pays him for from his op-ed pieces in the Australian Financial Review.

Latham was wrong in his column on the weekend when he wrote:

Self-evidently, if small businesses were any good they would’t be small. They would be big monstrous things with massive levels of profit, employment and economic grunt.

A good business owner, large or small, spreads risk. The best way to do this is across many revenue points (customers or products). Businesses relying on one big revenue generator carry a huge risk as do economies – look at the doom and gloom forecasts for Australia flowing from the mining downturn.

Our economy will be stronger from 10,000 small businesses with combined revenue equal to one large national business.

While I am no economist, I suspect and economy will benefit more from many small businesses than one big business generating the same revenue. Here’s why:

  1. Small businesses have been essential to cost-effectively delivering the newspaper in which Latham writes since it was first published.
  2. Small businesses are less likely to shift revenue off shore.
  3. Small businesses are more likely to pay their full tax obligation. No double Irish with a Dutch sandwich here.
  4. Small businesses have fewer tax concessions.
  5. Small businesses are safer economically in that one can collapse and the community is okay. A big business in town collapsing can cause real hardship.
  6. Small business owners are less greedy than large business CEOs and senior management.
  7. Small businesses boost personal and economic optimism.
  8. Small business start ups are vital for economic activity.
  9. Small businesses employ fewer lobbyists and therefore get less time with politicians.
  10. Small businesses more actively support local communities as they are local.
  11. Small businesses are more likely to source products locally.
  12. Small businesses do more to spread local narratives.

Latham goads further with:

Small businesses, in effect, are the garden gnomes of the modern economy – purely ornamental and totally dispensable.

I don’t think Mark Latham actually believes this. If he does he is an ignorant small business bigot, he ought to work in some small businesses and see the world from here. He should see first hand local community engagement that is unique to small business. he ought to spend time in the office and see first-hand the economic value from wages paid, suppliers paid, rent paid, profits made. Sure, most small businesses make only slim profits – but does that matter? I know many small business owners who are not in business to get financially rich – their businesses make them personally rich.

I’ve owned my software company for 34 years and my retail newsagency business for 19 years. Both businesses have been and continue to be considerably more than ornamental for me, all who have worked in them and all who have done business with them.

The best business success in large and small businesses is that which comes from many small steps as it is this success which will be more sustainable. The same is true for an economy. Australia will benefit from more small businesses not fewer. They do not need massive handouts, only the occasional reaffirming encouragement like the instant asset write off in the latest federal budget.

While I appreciate Fairfax runs Latham’s pieces to encourage debate, in this piece on small business he offended a business community that is vital to Australia.

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Ethics

Warm up your newsagency this winter with laughter

Winter is here. It’s months before the next major traffic generating season. Now more than ever we need to make our businesses appealing. This week I’ll share some tips.

Practical ideas to warm up your newsagency this winter with laughter.

  1. Look at the fun range of products from Independence Studios. Setup a table or display at the front of the shop around products that make people laugh. They have a sale on right now.
  2. Look at the fun range of products from MDI – you can drive lots of laughs with what they have.
  3. Play with fun items you sell on the shop floor – mix it with your customers.
  4. Host a local magicians showcase in your shop – especially if you sell magic tricks.
  5. Host an open mic event in-store for local would-be comedians.
  6. Setup a joke wall – invite your customers to share their best jokes.

All simple ideas focussed on the fun and positive and to help people forget it is winter.

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marketing

Worth revisiting the Greens small business policy

Prior to the last federal election I commented about the small business policy of the Greens compared to the major parties. I felt the policy of the Greens was better. I still do.

I reconsidered this recently following the federal budget small business initiatives. It is interesting to see what the Greens proposed and what the government has subsequently announced.

For all their attacking of the Greens, the federal government has borrowed heavily from the policy work done by the Greens. I would have like to see the government acknowledge this.

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Small Business

Happy with May results for the newsagency

We had a great May with revenue up 7% on the back of excellent growth in May 2014 over 2013. Everyday counter card (birth to death) sales were up 25% of an excellent base, gifts up 25% – now 33% of cards, plush up 63% – not close to 50% of cards, toys up 340% off a good base – it was a stellar month.

Our focus on gross profit has continued to work with good growth there as higher margin items are in more baskets.

These results are from many small steps which is the way I like it. I don’t want success from one big single move as that is risky for the business. I prefer many small steps that feed into each other and compound to create the result I am writing about here.

I am writing about the results here to encourage newsagents to look at their year on year results, to share them and to know that we can grow our businesses and make them more valuable.

How did you do in May?

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Newsagency management

The shopping centre challenge for newsagents

While being in a shopping centre has its benefits, it also has its challenges – such as when an anchor tenant departs. The troubled Top Ryde shopping centre in Sydney is to lose Myer as reported recently. With Coles and Kmart taking the Myer space the traffic mix and frequency of visit will change.

Independent retailers in shopping centres are there for the ride in many respects, hoping the majors work and bring in a traffic mix off of which they can benefit.

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Newsagency management

We need healthier newsagents

It can be tough staying healthy while running a business, especially in these days of lean overheads. Eating on the run and lack of exercise can damage our bodies and impact negatively on our businesses.

I struggle with my weight and have been able to stabilise this by walking at least 8km a day. I got a Fitbit in January 2013 and this changed how I get exercise. It measures steps, stairs and distance. As long as I do 10,000 steps a day I know I’m doing okay even if I make some (necessary) poor food choices.

While I understand some reading this wills they don;t have time to walk for an hour a day, I’d disagree. For your health you can make the time. I do. I walk in time slices. Usually for 30 minutes at lunchtime and for 40 minutes at the end of the day making business calls.

I find that a daily walking target works better for me than exercise a few times a week. That said, I know of newsagents who exercise in the back room, play golf three or four times a week, are un a running group and swim in a group activity.

Health experts say daily exercise is vital for your mental health – so the benefits go beyond physical health. Here is another reason we need to take care of ourselves.

I am writing about this today to encourage newsagents to talk about how they exercise to encourage others.

If you are a Fitbit user and want to connect and taunt me click here for my profile.

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Newsagency management

Warm up your newsagency this winter with sound

Winter is here. It’s months before the next major traffic generating season. Now more than ever we need to make our businesses appealing. This week I’ll share some tips.

Practical ideas to warm up your newsagency this winter with sound.

  1. Play summery songs.
  2. On Fridays, offer to play summer songs from your customers.
  3. If there is a local choir consider asking them to busk out the front singing summer music.
  4. See if your local school or kinder would like to put on a summer show out the front of your shop.
  5. Maybe play a recording of waves crashing to bring the summer beach experience into your shop.

Sound alone probably won’t do it so consider some in-store VM to connect with your sound activities.

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newsagency marketing

Terrific newsletter from GNS

Click here to see an excellent newsletter from GNS management. I share the link here with permission.

I say the newsletter is terrific because of the depth of information presented, the outlining of strategies for the business and the openness of the communication itself. The newsletter is full of facts.

GNS is a victim of considerable ill-informed gossip by newsagent suppliers and newsagents. Given the business is owned by newsagents, newsagents ought to take more care with this asset.

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Ethics

Warm up your newsagency this winter with colour

Winter is here. It’s months before the next major traffic generating season. Now more than ever we need to make our businesses appealing. This week I’ll share some tips.

Practical ideas to warm up your newsagency this winter with colour.

  1. Colour your window. As they are doing in Kikki.K at the moment – use a single warm colour. Grab attention.
  2. Colour block in store. with every display and all product placement, group colours together. This will considerable boost warmth.
  3. Feature colour on your Facebook page. Talk about bright colours.
  4. Run a warm up winter colouring competition.
  5. Colour your floor.
  6. Colour your hair.
  7. Colour your face – maybe at the peak of winter turn every team member into a bright sun.

Yeah, some of these ideas are ridiculous. My hope is that in the ridiculousness you find ideas of your own for bringing colour to your newsagency this winter.

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newsagency marketing

Beware the add backs if you are buying a newsagency

I was looking through a profile for a newsagency for sale in Victoria recently and was surprised at the number of add-backs to get to an Adjusted net profit. In this instance, I’d consider this figure to be a work of fiction as there is no accompanying explanation or detail provided.

The best assessment of business performance is the Profit and Loss statement. While it could be that the company has other interests or activities, it would be straightforward for an accountant to provide a P&L for the newsagency entity within the overall business.

It is only when you get back to original accounting and business performance data that you can assess the financial health of a business. This is crucial to determining the appropriateness of the vendor asking price.

A good business run well and profitable will attract a good price.

I am suspicious of newsagency business profiles with many add backs, especially when these are presented would accompanying explanations or a supporting P&L to provide context.

If you are planning on selling your newsagency soon, do everything possible to drive profit today as this is what will benefit you when you do decide to sell. Smart purchasers will pay a premium for profit and not for a figure boosted by add-backs.

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buying a newsagency

How a micro Facebook campaign unlocked a new customer

We had a customer shop with us Friday for the first time, spending $89.95 on a destination purchase. They came to our shop to purchase items we had promoted for two days on facebook for $5.00. This shopper is a collector of the items we promoted. They will certainly be back. W3e estimate that they spend in excess of $500.00 a year on their collection.

While the narrowly targeted $5.00 Facebook spend attracted more shoppers, this is one who was clear with us about the value of the facebook ad.

Yes, we can attract new traffic for our newsagencies.

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marketing

The ANF ignores questions about what its representatives have said about the MPA pilot

I have heard from several newsagents that representative of the ANF has been critical of me at public meetings and critical of what I have said about the MPA pilot of proposed new magazine supply rules.

The first time I heard this I contacted the ANF staffer who reportedly spoke about me, Ann Nugent in Queensland. Ann did not respond.

After a week or so I contacted ANF CEO Alf Maccioni about this and other comments reportedly made. I copied Ann in that email. Neither has responded.

If what I am told ANF staffers have been saying is true they have sought to damage my character. That they are not prepared to respond to my reasonable request to discuss this speaks volumes in my view.

Yes, I think their handling of the MPA trial is another example of the ANF being out of touch with newsagents. Their lack of consultation and communication is on the public record. Their failure to engage with those who criticise them served to fuel more criticism.

I’d like to publicly debate the CEO of the ANF on his handling of this matter. Such a debate would either reveal ore than newsagents have been told today and through that assuage their concerns. Alternatively, it could highlight the extend of the poor representation of newsagents by the ANF on this matter. I have emailed Alf suggesting a debate. I’ll let you know if he responds.

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Newsagent representation

Sunday newsagency management tip: 8 ways to encourage employee engagement

Your employees are your front line. They can make or break your business. You hire them, train them, motivate them and fire them. Their performance is on you.

Here are eight tips to encourage their engagement:

  1. Train them.
  2. Communicate your expectations.
  3. Congratulate them.
  4. Be open with them.
  5. Ensure they know the goal of the business.
  6. Give them responsibility.
  7. Listen to their ideas, seek their counsel.
  8. Thank them.

Our businesses are unique in many ways and our employees play a vital role in reflecting and leveraging that uniqueness.

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Management tip

Sunday newsagency marketing tip: get your window noticed using a single colour

IMG_6832The current window display at Kikki.K stores is stunning and traffic generating.

Using a single colour, as they have done with their deep and strong yellow, grabs your eye and so you are looking at the range of products they are promoting.

The yellow is also inspired for this time of the year, on the even of Winter. It brings brightness to colder days.

Walking through a centre in Sydney during the week, this is the retail window I remembered.

We can do this in our newsagencies and use our window to attract shoppers by clever use of a single colour to support the promotion of a range of even vaguely connected products.

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marketing tip

Colouring at the counter drives sales in the newsagency

IMG_7126 (1)We have had team members colouring at the counter this week, to show off a product we are promoting. Instead of posters and other usual activity to promote the item, we have engaged with it as people would at home. We’re selling plenty of stock – not only the item we are engaged with but the pens and markers being used for the colouring.

We have even had customers join in.

There is plenty in the average newsagency to engage with in this way, especially in the stationery and art departments.

It is easy to say there is not enough time to do this. However, you don;t actually have to compete the task. Even having the items there, sitting at the counter while you serve can have people notice product they otherwise might have missed in the shop.

I see this practical in-store engagement with what we sell as a marketing activity. This is another small step we can take to grow sales and customer retention in our businesses. Success comes from many small steps.

Try this yourself – go find something you and your team can engage with at the counter. have fun. Show that your business is different to others selling the same product.

12 likes
Newsagency management
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