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

Beware the good mate rep

I was working with a newsagent a couple of days ago, looking at the performance of some categories of stationery. They were clearly overloaded – the stock turn for this particular category was a third of stationery overall. The problem was with the buying, some very bad and expensive decisions had been made.

It turned out that the representative for the supplier calls on the newsagency every few weeks and does an order. The newsagent would have none of my view that the rep was part of the problem. “He’s a good bloke” , the newsagent said to me. Well, he is a supplier and only makes money when he does an order with you. We’re mates. Maybe, but he is a supplier. He wouldn’t do wrong by me. He is – you don’t pay his wage.

Too often reps overload newsagents with stock. The great deals are designed to shift product to the retail floor. Occasionally there is a flow on for the consumer but more often the deals lead to more stock and stock on its own does not move any faster.

I suggest to newsagents that they put a stop to reps calling unless the data the newsagent has supports regular visits and agrees with proposed purchases. Otherwise, you’ll end up like my friend – with boxes of stock which will need considerable discounting to move.

Sales reps are your suppliers first, chasing a buck, and your mate second.

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Stationery

The invitation wall

invite_wall2.JPGThis photo shows part of the new invitation wall we are experimenting with in our Sophie Randall Cards and Gift shop. It follows the blocking approach we have been using in our newsagency for our new stationery layout.

Early indications are that the full face display will easily justing the real-estate commitment. Customer feedback is excellent. Indeed, we are planning to increase our range by 50%.

The only challenge of the fixturing is that it cannot hold as many packets of each design as we would like. Given that invitations are purchased in a minimum of two packets – managing non displayed stock properly is crucial.

The question we are asking ourselves is whether an invitation wall like this would work in our newsagency. The shopping experience is completely different between the two shops. We will have the space in the newsagency once we remove the Christina Re range.

Invitations are good business and price is less of an issue we expected. Done right, they can set you up for excellent add on business – matching stationery for the party and the like.

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Greeting Cards

Stationery brand poll for newsagents

Jarryd Moore has a timely and welcome poll at his news4newsagents blog asking whether the generic Sovereign branded product should be included in the GNS Christmas catalogue.

Regular readers here would know that I would prefer to see all newsagent stationery warehouses provide better support for national brands and less for house brands. Newsagents would be better served leaving the house brand game to the majors. Consumers think we are expensive so they are less likely to visit our shops looking for a lower cost house brand.

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Stationery

Selling magazine freebies

I was in a newsagency the other day and noticed a discount box near the entrance. In the box was a mixture of items – all priced at $2.00. What surprised me was that the items were the freebies provided with magazines, taken off copies prior to return.

Newsagents doing this need to consider how this looks to customers and employees. My view is that it is something a cheapskate would do. I think this is how employees would see the activity. From a customer perspective, you have to wonder what they see as the connection between the discount box and the main-game products in the newsagency.

I respect that newsagents have the right to run their businesses how they see fit. However, we all need to understand that we do under our newsagency shingle reflects on our colleagues.

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Customer Service

Giant book sale

book_flyer.jpgWe re-launched into books last week based on a four page A6 flyer – sent to 15,000 homes around our centre. Our supplier overprinted the brochure with our details – always helpful in driving traffic back to your particular store. While we have played in the book space previously, this is the first time we have supported the category with a concerted campaign outside our shop.

We are supporting the catalogue with considerable stock displayed in front of our newsagency (see the photo below). While the flyer and range is Father’s Day themed, all categories are selling well – far better than expected.

What’s also interesting is that the sale is drawing people into the shop who would otherwise have passed us by. I especially like the browsing, and business, immediately prior to Australia Post opening each morning.

giant_book.JPG

We’re not in books at this level for the long haul – I see it as something to run three or four times a year with a smaller range in store in between. The folks at Australian Book Wholesalers have been very helpful.

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Book retailing

Buying paper for the environment

Give then noise about the paper mill planned to be built by Gunns in the Tamar Valley Tasmania, I was interested to read a report published in May by Access Economics on paper and the environment.

Commissioned by representatives of Double A paper, the study analysed the environmental impact of major paper manufacturers around the world. The report lauds Double A paper as being environmentally sound:

Considering a wide range of environmental issues relating to paper manufacturing, Access Economics estimates the environmental cost of Double A paper to be just over $16 per tonne (or 4 cents a ream). This compares with a cost of $80 per tonne for a leading brand of Australian copy paper (see table and chart below).

Double A’s environmental advantage lies in its pulp sourcing (from farmed eucalyptus trees grown by farmers along the edges of rice plantations) and its ability to be self-sufficient in energy via its carbon-neutral biomass-fuelled electricity generating plant. In addition, waste water is treated by ‘extended aeration activated sludge’ process and recycled to irrigate trees and to cool the power plant without discharging into public water sources. Moreover, high
rainfall in Thailand means that the opportunity cost of water used in the paper making process is relatively low. As such, Double A outperformed recycled paper from the United Kingdom, and its European and Finnish counterparts.

I’m please to read this because Double A is the premier brand of paper we stock in my newsagency.

While I am against the Gunns paper mill, this report from Access Economics brings the issue of paper back to consumer choice. What we feed into our printers every day is as important an environmental decision as whether the mill is built. It is why I will continue to support Double A paper.

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Uncategorized

Making magazine putaways work

morse_putaway.jpgThe bar-code label (circled in yellow) on the cover of this issue of Inspector Morse partwork is central to our management of putaways. When the customer collects the title we scan the barcode and record that this specific copy has been collected by the customer. If it’s billed to their account we track that. If they are to pay we track that.

What is important is that at any point in time we know exactly what titles are in stock and waiting to be collected – without having to go through our putaway drawers.

This customer level control by title helps us improve customer service – more certain putaways when titles arrive, better allocation in the event we are short supplied and less chance of being left with uncollected stock.

Customers like the fact that their putaways are professionally labeled and barcoded in this way. Given that putaway customers spend more than almost any other category, the extra effort is well worth it.

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magazines

Keytek goes direct and undercuts newsagents it supplies

Keytek, the high profile compatible ink and toner supplier to newsagents and which, as I understand it, supplies Officeworks, competes with those it supplies through its PrintXpress website. PrintXpress is very price competitive – undercutting many retailers it supplies through its Keytek parent. It’s disappointing that Keytek is harming its business partners in this way.

UPDATE: 30/8/07. Chris Watts, Marketing Manager from Keytek called me today and explained that PrintXpress was a test site and was never meant to go live, that it was his initiative and not Keytek’s as such, and, that they were not out to compete with newsagents and other retail customers. On the evidence, the site was live and it was competing against Keytek customers.

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Stationery

APEC Summit too much for Sydney Morning Herald

APEC is affecting more than the streets of Sydney when the circus rolls into town. Check out the note the newspaper experts at Fairfax have just sent to NSW Newsagents:

Fairfax will produce a Bumper Weekend Edition of The Sydney Morning Herald over the APEC long weekend which will retail for the normal Saturday price of $2.20 (incl. GST) for the entire on sale period.

DISTRIBUTION (NSW/ACT):

“SPECTRUM” SECTION
• Sydney Metropolitan newsagents will receive the “Spectrum” section on Thursday, September 6, one day earlier than normal.
• Country NSW/ACT newsagents will receive the “Spectrum” section on, Friday, September 7.

“THE FORM”
• The Form will be distributed to newsagents on Friday, September 7 as normal.

FRIDAY (Public Holiday) – September 7, 2007
• You will receive a supply of the early edition of the Weekend Bumper based on your past sales of Bumper Editions.

SATURDAY – September 8, 2007
• You will receive a supply of an updated edition based on your past sales of Bumper Editions. The updated edition will have the latest news and sports content.

KEY OPERATIONAL POINTS:

SHOP SALES & GENERAL RETAILERS

• On both Friday, September 7, and Saturday, September 8, the APEC Bumper Weekend Edition of The Sydney Morning Herald is to be sold complete at $2.20 (incl. GST).

• Please ensure that The Form is available as normal to retail customers on Friday, September 7.

HOME DELIVERY CUSTOMERS & FAIRFAX SUBSCRIBERS

• 5 day (Mon-Fri) customers should only receive a delivery of the Bumper Weekend Edition of The

Sydney Morning Herald on Friday, September 7.

• The Form customers should receive their delivery as normal on Friday, September 7.

• Daily customers should receive a delivery of the Bumper Weekend Edition of The Sydney Morning Herald on Friday, September 7, AND should receive a delivery of the updated edition with the latest news and sports content on Saturday, September 8.

• Weekend only customers should only receive a delivery of the Bumper Weekend Edition of The Sydney Morning Herald on Saturday, September 8.

We appreciate your ongoing support and professional approach to the Herald Bumper Editions and are sure their success will continue.

Just when one would have thought the city’s newspaper of record would want to show off, it goes for the Aussie long weekend.

These distribution plans considerably increase the workload on small business newsagents without any compensation. They demonstrate a lack of respect from Fairfax.

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Newsagency challenges

Impulse crosswords

crosswords2.JPGOn Friday last week we created this display of a small selection of Lovatts and Puzzler crossword titles in front of our photocopier and next to our main newspaper stand to drive impulse sales.

We have added close to $100.00 in sales in four days – from this stand.

While we cycle other categories through this display, the performance of crosswords is particularly strong. I think this is because the category lends itself to impulse purchase with our core demographic – older, heading to retirement.

We selected Lovatts and Puzzler since they are brands crossword consumers know the most. Our experience with impulse displays is that you have to make it easy for the consumer. Brands are key to this.

We will leave this display run for two weeks before replacing it with another category.

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magazines

Saturday support for newsagents

In a first, Tower Systems (the newsagent software company I own) has announced Saturday Help desk coverage – commencing this Saturday. This is in addition to its usual 24/7 after hours service. The service will be staffed by some of Tower’s most experiences support team members.

By launching a full service Help Desk on Saturdays, Tower is seeking to better service its growing newsagent customer base. The company has had its busiest Joly and August months in its history. With in excess of 1,400 active newsagent customers, Tower takes its commitment to the channel seriously.

The company has also announced three new customer service roles and an additional software development role.

Saturday support is available on the usual Tower numbers of 03 9524 8000 or 02 9525 6444.

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newsagent software

Driving impulse purchases of magazines

weeklies_aug27.jpgWe are trying something new with the magazine display at the front of our shop by including a column of health magazines between Australian Women’s Weekly and New Idea.

We already do this in our main magazine display with great success – see my earlier post about how this approach has helped us find amazing sales for a gardening magazine.

Note – the photo shows the magazines on a movable stand which we push to our lease line in front of our main lottery counter.

We will create a column like this every couple of weeks – to demonstrate the depth of our range for people who buy on impulse from the front of the newsasgency. Our health theme this week will become, maybe, family history, next time.

It’s important that newsagents use the high selling titles to drive impulse purchases of less popular titles. The key is to tell a story – such as the column of health titles. If we had a mixture of categories covered the column would not work.

As with everything we do like this, we will measure the results and change the approach if there is no traction within a few days.

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magazines

Magazine cover old news

cycle_sport.jpgHere is an example of where online beats print hands down. Cycle Sport which arrived in-store three days ago boasts on its cover an up to the minute form guide for the Tour de France. Hmm, the Tour ended a few weeks ago. The cover is out of date. While regular purchasers will not be worried about the out of date cover, first timers and intermittent purchasers are less likely to give the title a second look.

I guess selfishly, the cover makes my shop look out of date.

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magazines

Cards to dance to

card_nuts.JPGI’m told this is currently the top selling greeting card in the United States. It is kind of cute – hamsters apparently dancing on the cover. It’s when you open the card that you realise why it is a top seller. This music played from within the card is infectious. You can hear it at hamsterdance.com.

Sound cards are all the range in the US. There are hundreds and hundreds of them from licenced product based on popular movies through to cards based on iconic songs. Given the huge success in the US I am surprised that we don;t see more of them here. The samples I have been given would sell easily here.

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Greeting Cards

Bid 2 Buy online auction pitch from The Age

bid_2_buy.jpg

The Age is running it’s Bid 2 Buy promotion again today. The only link I can see from this promotion for the newspaper is as a pitch against eBay, to demonstrate relevance of the newspaper brand in an online context.

Rather than sporadic playing with the Bid 2 Buy concept to connect with the online classifieds space, I would have thought that Fairfax newspapers would gain more benefit from bringing the Trade Me brand to Australia – connected with its print mastheads.

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Newspapers

Engaging magazines

Mag Forum is a great resource for anyone wanting to find out more about the magazine market in the UK. Given the influence of UK titles on the Australian marketplace – OK!, Zoo to name two recent titles, the reported arrival soon of a local edition of Nuts and the many imports: Heat, Chat, Pick Me Up and Look, researching the UK market can provide some interesting pointers to local trends.

Since newsagents are magazine specialists – by virtue of the considerable range we carry in each of our 4,000+ locations – we owe it to ourselves to be across overseas trends.

On the one hand today I have posted links here about bad news regarding magazines and their closure. Then this post with links to reports of categories with growth.

To me, it’s about engagement. The more newsagents engage with the category and become demanding of their distributors the more successful they will become in the category.

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magazines

Magazine death pool

Magazine Death Pool is a blog about magazines which have closed or are predicted to be close to closing. The blog is an interesting chronicle and appears to stick to the facts rather than talking down magazines.

While some reading here would ask why provide a link to the blog? – I’d say, yeah, ignorance is bliss.

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magazines

Francis Bourke, newsagent, football legend

francis_bourkeFrancis Bourke, former AFL champion for Richmond, former newsagent and current newsagent broker with Wollermann and Associates featured prominently on several pages in yesterday’s Herald Sun in a story about the shooting on a TV commercial for Toyota featuring one of Francis’ most memorable moments playing football.

Francis is a legend not only to fans of AFL football, he is highly regarded in Victorian newsagency circles, having owned and successfully operated two newsagencies with his wife Kerrie.

I first met Francis in 1985 when he was looking for software to run his first newsagency. I am please to say he chose Tower Systems. His contribution ot my business has been wonderful over the years. Francis is the kind of person who wants to understand his business so he can make it more successful. That interest, early in the life of Tower Systems, ignited my interest in offering more than a glorified cash register and set us on a path to give newsagents tools to look at their business from a variety of angles.

While the coverage in the Herald Sun yesterday may not resonate too much outside Victoria, for me it is a personal reminder of the diversity and longevity of friendships made during the journey. Francis Bourke is as much an asset to the newsagency channel as he was to Richmond Football Club.

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newsagency of the future

Newsagent hours

The guy at the coffee shop told me he’d love to work newsagent hours when he found out I owned a newsagency. He went on to tell me about a newsagency down the road from his coffee shop. I checked it out and it was closed at 2pm on a week day. I’ve since checked it out several times during the day over the last two weeks and it was open once.

While it can be challenging for a single operator, everyone trading under the shingle suffers when one fails to provide even basic customer service by being open during the day.

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Newsagency challenges

ACP Magazines $64,000 Father’s Day prize

mags_dad.jpgACP Magazines has a fantastic prize on offer if you subscribe to any of six magazines in the lead up to Father’s Day at magshop. The choice of titles – Wheels, Money, The Bulletin, Wine, PC User and Inside Cricket – is excellent.

Research must indicate to ACP that this promotion will help boost sales, otherwise they would not invest in the promotion through online and print activity.

I wish I could offer the prize for the same commitment in my shop. With putaways so well managed from a technology perspective including the ability to handle a one year commitment and provide ACP transparency of this, the prize would be sure to boost my sales – plus regular putaway collection visit – and boost sales of ACP titles. The technology can even provide ACP with details of when the customer collected the putaway if the newsagent and ACP want to share such data.

Practical promotions such as this for Father’s Day would work in a newsagency. Newsagents would embrace it since it extends the Father’s Day offer beyond the traditional cards and candy offer – this is why we created our own Father’s Day pitch earlier this week.

Putaways are unique to newsagencies and loved by most of our customers. I’d like ACP to work with us to leverage putaways to their advantage. While newsagents can create their own offer, having a $64,000 car as a prize would help.

Working with newsagents on these promotions and not just online through magshop would certainly boost sales of ACP Magazines and deliver a great win win.

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magazines