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

I was wrong, Harves will sell!

harvs.JPGI have an arrangement with Gordon and Gotch whereby I have a say on the quantity we receive of a new title. Based on support for AFL magazines I decided against taking any copies of Harves, the commemorative one-shot about St Kilda AFL legend Robert Harvey. Thankfully, something went wrong at the Gotch end and I was sent stock. In the first week we sold six copies – and more since then.

While I am sure that some of my decisions to block titles and increase quantities for others have been right, the experience with Harves is proof of the risk in letting newsagents determine what they receive.

No, I am not saying that the distributors ought to have complete control. There are plenty of instances where they do not serve newsagents well in exercising control. What we need is a serious review which includes looking at the experience of newsagents who do have control through the Gotch arrangement – I would like to see how others perform compared to me in picking titles. I’d expect learnings from this to help navigate a revised model from what we have today – my experience with Harves notwithstanding.

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magazines

Better than Bill Express

better_than.JPGMy newsagent software company, Tower Systems, sent a fax out to newsagents yesterday promoting our offer as better than Bill Express. Click here for a full copy. With Optus and Vodafone coming to our exclusive integrated eziPass platform, integrated eftpos, excellent eftpos rates, exclusive magazine supply initiatives and our respected newsagent customer service status we felt like crowing.

Claims about how good we are would be hollow if were not putting something back into the channel and I mean really putting something back. While this year already we have sponsored the ANF national convention, three QNF conferences in Queensland and the national website initiative, it is our soon to run national TV commercial which demonstrates the extent of our support for newsagents.

I have owned this business since I started it in 1981. The TV commercial is a long held dream and proves more than any sales pitch that when it comes to newsagents that I am prepared to put my money where my mouth is and support the channel in a practical non partisan way.

This is why we are better than Bill Express, much better.

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Bill Express

More lotteries

The Victorian Government today increased the number of lottery games from three to five.  While we will get behind the new Monday and Wednesday games, I am concerned at consumer fatigue.  In our own newsagency, we helped migrate Wednesday Tattslotto customers to other games.  I don’t want to see those games suffer at the hands of the new games.  Nor do I want to see the Intralot Keno, Bingo and Lucky Lines games suffer.

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Lotteries

Good Health with a free health book

fhn_ghoct08.JPGWe are happily promoting Good Health at the counter at Forest Hill from today. The free health book which comes with the title this month qualifies it for this location where a title has to have a free gift to get the premium space.

This location continues to perform well for us and for the titles we select each week. As I have noted before, the keys are the free gift and that customers can buy off the display.

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magazines

Promoting Harper’s Bazaar

bazaar.JPGThis morning’s rant about tote bags as gifts notwithstanding, our team at Frankston is displaying the latest issue of Harper’s Bazaar in prime position at the counter between two sales registers. It looks stunning in person – primarily because of the black and white background and their use of the red bag as part of the display.

This display is a terrific call to action.  It makes buying Bazaar easy and will be more effective as a sales aid than a power end display.

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magazines

Vegetables for kids

growing_vegies.JPGWe like this Complete Aussie Guide to Growing Vegetables for kids.

Gardening related magazines are strong as are children’s titles. This new title covers both. We have it on display in the garden and weeklies sections. We plan to promote this at the counter on weekends – when families are shopping. The front cover makes a good pitch.

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magazines

More Organic Gardener stock

organic_sep08.JPGWe received this issue of ABC’s Organic Gardener a month ago. It sold well as usual – we co-located. We received more stock of the same issue today. While the distributor will say this is to ensure we have stock for another four weeks, our view is that the pocket has been profitable based on the first round of supply. Today’s extra supply makes the issue economically marginal. They should not push their luck like this.

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magazine distribution

Stab trashed in delivery

stab_oct08.JPGThe latest issue of Stab magazine gets our vote for poor packaging.  It comes in a white paper envelope which was damaged in transit – making it look unmerchantable in my view.  While I understand the publisher created the title without the rigours of the Australian distribution system in mind, there is no point in us receiving something we cannot sell.

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magazine distribution

Rolling Stone struggles

rs_sep08.JPGWe gave Rolling Stone extra space and attention last month and sold two of sixteen copies. This sell through of 12.5% kills cash-flow. Hopefully, the new attention from ACP Magazines for Rolling Stone will be able to lift this title out of the doldrums.  The music category needs a beacon brand pulling eyeballs.

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magazine distribution

Lucky Bingo syndicates

In response to questions posted here, we have put together some notes on how we go about running our Intralot Lucky Bingo syndicate at newsXpress Forest Hill.  The information is published here as information and not as advice or a recommendation.

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Lotteries

Top Gear goes live

The BBC has announced a worldwide live tour by the Top Gear team. The show will tour to 15 countries including Australia with Sydney a confirmed city.  In Auckalnd on friday I saw one store selling Top gear boks, DVDs and a game as well as the magazine.  Given the development of this an other worldwide brands by the BBC newsagents ought to consider getting behind more than the magazine.

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magazines

Are tote bags that special?

tote_bag.JPGTote bags are the most popular free gift in magazine marketing departments based on the number we have seen this year.  I have lost count of how many have been on offer this year.  On Monday, the new issues of Real Living and Bazaar came in, each with, yes, tote bags.  We already have a couple of other magazines in-store with tote bags as gifts.  This makes the gift less special and therefore less like to drive incremental sales.  It certainly makes the exclusive claim some publishers make questionable.

While I appreciate that publishers need to find gifts which fit their budget while connecting with their demographic, I would have thought that there were more options available than constant stream of tote bags we see.

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magazines

Swish Group wakens

Four months after announcing to the ASX of a deal with Bill Express over the Bill Express advertising screens, the Swish group has written to newsagents saying they would like to take over the operation and management of the screens in newsagencies.  To their credit they are proposing focus groups to find out what newsagents want.

The key unanswered question from the letter is the basis on which they think they may be able to access the screens.  We kow from the Liquidators of Bill Express that the ownership of the hardware is in question.  Complicating this, many newsagents have stopped paying the lease on equipment.

While newsagents will want a digital signage network, they will want it on commercial terms which reflect the value their retail network brings to the opportunity.  The network could not exist without newsagents.  The Bill Express mess has left many wary.  On the Swish Group proposal I would suggest approach with caution.

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Bill Express

Transforming newspapers

Vin Crosbie’s post, Transforming newspapers (part 2), is an excellent read on why US newspapers are struggling today.  While the US market is different to Australia, last week’s announcement from Fairfax indicates that the difference may be one of timing.  I like Crosbie’s post because the more we understand the drivers of change to newspaper sales the better we, as newspaper retailers, can navigate our own way forward.

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Media disruption

Warning about Bill Express payments

Several newsagents called me yesterday to advise on-going difficulties with their banks allowing money to be taken out for the Bill Express equipment.  Any newsagent in this situation ought to understand that many others have now successfully stopped this and received refunds from their banks.  The QNF and NANA have advice out with their members on handling this.  The legal team behind the proposed class action has provided advice on this.  There is no reason I can see for newsagents continuing to pay for this useless equipment.

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Bill Express

Father’s Day book sale a hit

fday_booksale.JPGWe are running the newsXpress Father’s Day Book Sale at Forest Hill and it is working a treat.  The Father’s Day themed books are selling well as are the other more general books.  The sale is supported by professional catalogue which makes selling easier.  We have the sale tables on our dance floor with our Father’s Day gifts to the front and the side.

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Book retailing

Top Gear powers on

top_gear_papers.JPGIt was good to see the latest issue of Top Gear Australia come in yesterday.  This title is the a bright light in a challenged car category.  While we have a full waterfall display next to our car titles, we have placed the feature stand next to the newspapers because we know that many Top Gear customers will not browse the car area.  If we don’t show them the title when they buy a newspaper we lose the sale to another outlet.  We will leave this on display for a week or two.

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magazines

The business end of Father’s Day

We are now at the business end of Father’s Day, the last week when somewhere between 60% and 90% of Father’s Day purchases are made. We have a story across the front of the shop as well as deep inside across a variety of product categories – cards, gifts, confectioners, lotteries, magazines, books and stationery.

fday_fh08.JPG

The photo does not capture the full range. To some it may look a little hodge podge. It does look much better in person.

We have sought to demonstrate the range we offer as well as the value of our offer. Father’s Day is no Mother’s Day when it comes to card and related sales. Our in-store efforts are working against that, hence our full-throated display.

Sales are already excellent, showing that going early with a season can work very well, even for Father’s Day.

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Gifts

More Intralot success

ilot_soldout.JPGHere is proof of local effort paying off. Our Intralot Lucky Bingo syndicate sold out Friday. This is the first time it has sold out. Sure it took a few weeks to build a following. So did the Wednesday Tattslotto syndicate when we started that. All it takes is some local marketing effort. This is where we as retailers have a resonsibility to build the Intralot story in-store. We will watch when this syndicate sells out and start another. This will build with small steps.

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Lotteries

OH&S issues with newspaper delivery

Respected ergonomist David Nery published a report into OH&S issues surrounding the handling of newspapers.  The study was undertaken at in South Australia the request of the ANF.  Click here for a copy of the report.  While based on the Sputh Australian experience, this report provides an insight which all distribution newsagents will find valuable.

I have had the report since mid 2006.  The ANF asked me to to publish the report as they were involved in negotiations with publishers about the report’s findings.  I think enough time has passed for me to publish the report here.

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Newsagency challenges

There is no territory

m_street.JPGNewsagents still talk of territories and complain when a newsagent or other small retail business offering similar product moves too close to their business.

We ought to embrace competition for it is out of robust competition that fight harder and smarter for our own businesses.

Another business will not stop competing just because a newsagent asks – they are likely to fight harder to prove the competition point.

There is no better illustration of the benefits of competition than Martin Street, Brighton, Victoria. Over the last two years this sleepy little street has become home to a bunch of cafes and bakeries. It has gone from being a street which has seen better days to being a beacon, a hive of activity.

The image on the left is of a flyer a group of the traders have produced. They are happy to be listed next to each other even though they compete. Visit the businesses at lunchtime and you soon see that while they all offer food, each has a different take. Such are the benefits of competition.

The mindset of these traders is the mindset we newsagents need when it comes to small business competitors. I am not talking here about the majors like Government Owned Australia Post outlets getting into our categories – that is a whole different issue.

If an independent stationery outlet opens near us, we need to respond in our own in-store offer. Likewise a card outlet. I have done this to myself at Forest Hill with our Sophie Randall card shop in the same centre as a newsagency I own. Both have had a very good year. Despite the competition, the newsagency has experienced excellent growth in card sales.

If you find yourself near Brighton in Melbourne around lunchtime, check out Martin Street and see the value of robust competition. The food and the coffee is worth the visit – in several of the stores.

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Newsagency challenges

The best counter offers

best_counter.JPGThe small range of Darrell Lea confectionery and the colourful pads from For Arts Sake are proving to be the best counter offer at our Forest Hill store.  While we have short-term feature product on the counter proper, these two rows of products are consistent performers.  They have good price points and are easily understood – critical in a counter offer where a customer will take a few seconds to add to what they are already buying.  The success of the Darrell Lea and For Arts Sake products keep them at the counter longer than anything else.

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confectionary

Promoting Father’s Day in NZ

whitcoulls_dad.JPGThis is a photo of a window display at a Whitcoulls shop I saw in Auckland yesterday. This is not the same shop as referred to in my previous blog post this morning. The Father’s Day pitch in the window was about every dad having his day. I didn’t feel connected with the pitch – the graphics seem impersonal.  Father’s Day is all about the personal connection.

whit_freecard.JPGInside this store they had many A4 posters promoting a card offer – a free greeting card when you spend more than $40.00. Given that books around for almost half the floors pace in-store I suspect this is more about driving that category than cards. Whitcoulls certainly appear keen to use greeting cards as the discount mechanism to drive business based on the stores I saw yesterday.

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Book retailing

Kenny’s Cardiology opens in NZ

cardiology_nz.JPGI was in Auckland yesterday and unexpectedly found myself in one of the new Kenny’s Cardiology on the day it opened. This is the third of what I am told is hoped to be 20 or so Kenny’s stores in New Zealand. While this is a new-look store for the Kenny’s model, it did not seem that different to me. However, judging any new store on the first day of trade is unfair – it can take months to settle a new format.

whitcoulls_50pc.JPGThe Whitcoulls (magazines, books, stationery, cards, calendars etc) right next to Kenny’s was responding to the new competitor with a 50% off call cards pitch. While I am sure they have their reasons, the signage looked a bit desperate.

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Greeting Cards
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