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

Question Time – an Aussie game you could stock

I have been approached by the makers of Question Time!, an Aussie game built around the theme of question time in parliament. Here is all the information they provided me:

Would like you to stock the Australian board game, QuestionTime, this Christmas?

It’s a game about Australian politics and political history, with intrigue and rat-cunning thrown in.

The board represents the layout of the House of Representatives and role-play is used to involve players in the ‘game’ of politics. It is great fun to play and educational as well. It has over 1500 questions – mostly multiple choice. Political knowledge is rewarded, but so are tactics, sneakiness and alliances. And there are a number of different wild cards that can be used to disrupt know-alls – by sending them to the back benches, blocking a proposed bill, and WORSE.

This game has proved to be a popular Christmas present. One of our stockists sold over 500 copies in the 2 months leading up to Christmas.

Hi Laughing and having great time playing game for first time. G.S. Roberston, NSW

My mid-20s son played for a riotous 5 hours with his friends…we’re keen to get our own copy. N.C. email correspondent

Had four friends around for lunch today. Just finished Question Time and had a ripper of a time. Thanks. R.W. Kiama, NSW

Question Time Board Game is the best Australian game since Squatter. It’s a cross between Trivial Pursuit and Monopoly. M.M. Perth WA

We designed the game in Australia for Australians. All components of the game are high quality – from the linen backed board – to the book of “Parliamentary Business and Questions Without Notice”. The games come in cartons of 4. Each game is individually boxed, which is handy if you need to send games out.
RRP is $70, wholesale is $40.

For more information visit our website questiontimegame.com.au or contact us by return email.

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Newsagency opportunities

Long service leave changes in Victoria

Victorian newsagents should ensure they are aware of Long Service Leave changes that came into effect from yesterday. While not dramatic, there are changes that bring forward access to benefits. From the Business Victoria website:

  1. The new laws will provide greater flexibility to women, families and those transitioning to retirement.
  2. Employees will be able to apply for leave after seven years of work, rather than ten years.
  3. Employees can now take long service leave in smaller increments, i.e. a minimum of one day per occasion.
  4. Absences from work including unpaid parental leave will generally not break continuous employment.
  5. Certain breaks will now count towards accrual of long service leave, e.g. unpaid parental leave of up to 52 weeks, or longer in certain circumstances.

Point 2 is like to be the most interesting change in that previously people could only take Long Service Leave after ten years, even though it was paid out on employment termination after seven years. Now, it is seven.

From a business management perspective, it is good to encourage people to take Long Service Leave so that the liability is managed in advance of any business sale or closure.

Each state and territory has their own Long Service Leave rules and processes.

Click here to access a useful fit sheet on Long Service Leave and usual employees.

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Newsagency management

Opportunity: Clare SA, a town now without a newsagency

The town of Clare in South Australia is without a newsagency following the liquidation of the newsagency that was in town. With a town population of 3,200 and regionally more, there is an opportunity for someone wanting to re-establish a newsagency-like business in town.

With the only business closed, the opportunity is interesting as starting fresh always is as you could make this what you want with core newsagency products a small part of something more current in appeal.

The contact details for the liquidator are: Ian Burford 08 8231 3323.

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Newsagency opportunities

Changes to penalty General Retail Industry Award rates apply from today

Effective from today, November 1, increases apply as a result of a review, which is done every four years, of penalty rate loadings. While a surprise to many, there has been some coverage on the move. However, it is seen as odd because of the earlier move to cut penalty rates,

Casual employees must be paid the following penalties (in addition to the 25% loading) for all work performed on a Saturday as follows:

  • From 1 November 2018 – an additional 15% penalty
  • From 1 October 2019 – an additional 20% penalty
  • From 1 March 2020 – an additional 25% penalty

Further, casual employees working evenings i.e. after 6pm on Monday to Friday will receive the following penalties in addition to their 25% loading:

  • From 1 November 2018 – an additional 5% penalty
  • From 1 October 2019 – an additional 10% penalty
  • From 1 March 2020 – an additional 15% penalty
  • From 1 October 2020 – an additional 20% penalty
  • From 1 March 2021 – an additional 25% penalty

Under current arrangements, these increases must flow on to employees.

Click here to see analysis of these changes. Click here for blog post from a legal firm with analysis.  Click here to read the FairWork Commission decision in relation to these changes.

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Newsagency management

Leveraging behind the counter in the newsagency

We like to keep behind the counter clean and simple, to use it as a billboard for a promotion or seasonal theme. All through October we have done this, pitching the October is Beanie Boo Month newsXpress promotion, which has been on TV nationally.

As the photo shows, the display is balanced, product driven and with a clear message at the heart. We have found this works – keeping it simple with a singular focus.

Shoppers ask about the product and purchase from what is on display. We notice people looking at the display as they wait to be served or are being served. This is why simple is best, we don’t have much time in this situation.

This behind the counter wall is best used for easily understood and purchased items, items people will happily add to their basket at the last minute.

I think it is best to have only one product or one category represented in the behind the counter display. Mixing it up with multiple product categories can be confusing and leave shoppers not noticing your pitch.

The critical thing is that your behind the counter space works commercially for you. If it is not, change it until you find a mix and display approach that works. And once you find that, try and copy it, learning each time.

Having a behind the counter focus is another small step strategy that can add value to the business. While you won’t retire on the proceeds, it is a piece in the puzzle of growth.

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Newsagency management

Is the Kikki-k card pitch good value?

While Kikki-k has always priced cards to appear to offer a discount, the buy 3 get 4 pitch feels new. I can’t recall seeing it before.

Of course, since they make what they sell, it is easy for them to pitch, especially so for the low cost product.

As as informed shopper, these cards are not cheap. However, I suspect most shoppers would not see it that way, they would see the p[itch as a good deal.

In my opinion, Kikki-k is like Typo, expensive, even when they do deals and run sales, very expensive for the quality of the products. That aside, they make a successful pitch, especially in the card space. Their approach at perpetual basket depth chasing offers is like what we see from the major magazine companies, especially at transit locations.

I suspect we will see more of this pricing model in our channel, too, as we deal with these nationally run competitors.

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Greeting Cards

Why is it called a “newsagent poster”?

Reporting of the Geoffrey Rush defamation action against Nationwide News (News Corp) regularly refers to a newsagent poster:

Mr Rush, 67, is suing the Telegraph‘s publisher Nationwide News for defamation over two news stories and a newsagent poster alleging “inappropriate behaviour” towards a female cast member during a 2015-16 production of King Lear. Mr Rush, who performed the lead role, has vehemently denied the claims.

While the poster in question was provided by News to newsagents, I’d not call it a newsagent poster as in the usual course of business it would have been provided to retail businesses that do not identify as newsagents.

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Newsagency challenges

Learning from Christmas card placement at Coles

It is interesting to see placement of Christmas cards in Coles supermarkets as moves they make are thought-out, tested and made in pursuit of a revenue goal.

This photos shows one display unit of single cards placed next to tissues. Tissues are common in the weekly shopping basket I am told.

This photo shows placement of a display unit of boxed cards next to toilet paper. Toilet paper is a popular supermarket purchase.

Both photos are from he sale Coles, taken yesterday. I checked one other Coles a suburb away and found similar placements for these products.

For any retailer to achieve better results from Christmas cards this year compared to last year we need, in addition to better products, better in-store engagement and a key factor in this is our placement. In fact, I think with the same or similar cards to last year in fresh and more tactical locations could / should drive a better result.

Coles has evolved its card placement / engagement in the last year. They are more engaged with the category than before. I expect sales are up as a result.

Part of the challenge in the traditional newsagency is that cards are only in the permanent card department. That is a mistake as it only serves the destination card shopper.

What newsagents do is up to them. For me, we are playing with locations. Already, boxed cards are doing very well.

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Greeting Cards

Fun content matters on social media

Sometimes, the best social media posts are those that are just because. You know what I mean, a fun image just because it is fun or a cute video you share just because it is cute. Posts do not need to have any commercial focus or intent, and often commercial benefits can flow.

This video is a good example of just because social media content.

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Fun

Evolving the Halloween offer is key to success

Halloween continues to change for us. Whereas ten years ago it was all about cheap plastic pumpkin buckets, cobwebs and plastic fang teeth, today it is about for artistic and higher-priced items such as party centrepieces and home decor items. The change is focus reflects a focus on Halloween parties rather than trick or treating.

The shift in focus happened a few years ago because of supermarkets and discount variety stores buying the same product we had been stocking, some from the same suppliers, and slashing margin to change volume.

We decided they could have that space when we realised they would stay there and not touch home decor and party host opportunities.

We target product price points at $20.00 and above. The best items are those at $500.00. I recall once we bought in a $750.00 item as a display feature that we did not expect to sell … and we sold it in two days.

We change the product mix every year, usually purchasing at a modest volume so that we can tell an evolving story rather than people looking and thinking were are doing products this year that we did last year as that is retail death.

Halloween is a good season for an evolving newsagency. It’s a fun reset prior to Christmas and something good to come out of Father’s Day with.

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newsagency marketing

Promoting the joyfulness of sending Christmas cards

This handmade in the shop wreath featuring Christmas cards is getting comments from shoppers. It is also attracting people to the shop to see it and the products it is helping to promote.

It is bright, unique and celebratory. It is unlike any other card or Christmas-themed collateral in Australia right now.

The wreath sits as a centrepiece, above some of our boxed cards.

Being double sided, the wreath pitches to shoppers outside the business as well as those inside.

What I like about the wreath is that it pitches joyful greetings. I think that is a terrific Christmas pitch without being over the top.

I also like that it was made in the shop and features cards we have available for purchase.

You know you have a winner when a competitor comes and takes close up photos.

I first saw a wreath like this in the US a week ago in several outlets of a card and gift chain that has no connection with Australia. That one was one sided and did not contain some of the elements of this wreath. So, leveraging the US idea, we added our own touches and created something that pops beautifully, something that is unique in Australia.

A how-to guide was created for newsXpress members to create the wreath locally. This includes step by step photos and advice on the physical assembly as well as advice on how to make the card envelopes visually pop.

Looking at boxed and single Christmas card sales for October, we are ahead of  this time last year, which was ahead of the year before. We are thrilled with the double-digit growth.

All card retailers need to engage with the category beyond keeping pockets full. We need to encourage people to buy and send cards, we need to remind people of the emotional connection as well as of the value of the memories when cards are looked at down the track.

Australians by less than half the cards per capita than people in the UK do and around 25% less than people in the US do. We, along with suppliers, need to grow engagement, we need new card shoppers and we need card shoppers spending more.

I think one way to do this is to appeal to the emotion of the giving. There is no downside for retailers in pursuing this.

This wreath is a small part of a much bigger strategy that focusses on growing card sales by converting people to card buyers and providing them an in-store experience that guides a deeper basked purchase from the category.

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Greeting Cards

Newsagents quitting newspapers

Another newsagent let me know yesterday that they are quitting newspapers. They are in a suburban shopping centre and sell 50 or less papers a day. As a sub agent, they make around 25 cents a paper.

Their decision has been brought on because of a dispute with the distribution newsagent. That was over withdrawal of services previously provided by the newsagent – returns pickup.

The dispute caused the retailer to look at numbers and at what else is purchased by the newspaper shopper and, over a month, how often newspaper shoppers returned for other purchases.

The data gathered shows that in their situation, less tham 5% of newspaper customers bought anything else in the paper purchase visit and none returned to purchase at any other time, separately.

The shop is well laid out with current gift and other offerings and compelling displays for impulse purchase.

On the evidence and considering the stress of the relationship, they made the decision. That is six retail newsagents I know of this year who have made the decision.

I am not writing here as advocacy. rather, I am noting what some are doing, and in doing this they are ahead of newspaper publishers in terms of the commercial value of a declining product. This is a KEY POINT of this post. Daily newspapers in Australia will close. Newsagents quitting the category are exercising more control over their own businesses.

The criteria for such a decision is, in my opinion:

  1. Return on floorspace.
  2. Customer value in the paper purchase visit transaction.
  3. Customer value over the long term outside the paper purchase transaction.
  4. The preferred identity of the business. For example, are papers a service that it is good for the business to offer?
  5. The ease of the supply relationship.
  6. Whether the print product fits the strategic direction of the retail business.

I am at the point of considering this decision in one of my businesses. It has been under consideration for a few months, I think we are ready to make a decision.

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Media disruption

Embracing the Harry and Meghan one-shot

We are all set for the New Idea Harry and Meghan one-shot from Pacific Magazines that goes on sale in the morning. We plan a counter and front of store pitch from early in the morning to make the most of the early sales opportunity as Coles, our main competitor, is usually slow with magazines. With the regional royal tour still underway, there is a terrific opportunity for good sales with this.

I urge everyone to give this title a red hot go, early in the sales cycle.

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magazines

The latest Toy sales results show the value of this category

Australian toy sales data collated confidentially for the Australian Toy Association, retailers and suppliers, provide valuable insights into performant and trends. The regular reports are a wonderful insight for people fortunate to have access to the data.

The toy category is strong and valuable to retailers engaged with it. 2018 is proving to be a terrific year in this category for retailers that manage the category to success. By this, I mean retailers who buy what sells and replenish with what sells.

This is on my mind today because of a conversation with a retailer over the weekend who did well with a toy range, replaced it with another toy range that did not work and therefore feels that toys are not tight for their business. Their mistake was that they did not replenish with what was successful.

Let’s look at the performance data in some detail. $1,200 worth of inventory at wholesale moved in six weeks. It was their first play in toys. They did not replace the licenced range from within that range. Instead, they went with a new range, but still in the toy space.

Ignoring the excellent good news from their first crack at toys, they decided to quit toys altogether based on the second experience.

Had the buyer in the business purchased inventory based on what was selling, by now they would be on their further or fifth order as the licence remains very popular.

Toys are strong. However, you need to buy well, buy to trends and replenish based on your success data.

But back to the latest ATA sales data, here are some takeaways at a headline level:

  1. Toys are strong.
  2. Challenges for some majors are helping independents.
  3. Average pricing is holding up.
  4. Building Sets/CONSTRUCTION trending upwards.
  5. Plush continues strong with terrific results.
  6. Harry Potter licence is strong and delivering growth.
  7. LOL Surprise continues growth.
  8. PAW PATROL licence continues build.

I’d also note that for newsagents, toys are a net new traffic driver. They work front of store, in their own department and at the counter for easy impulse purchase.

If I look at my own situation, in one of my stores toys account for over 30% of revenue with GP sitting at above 50%. Our buying is data driven and our out of store marketing is not newsagency related.

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newsagency of the future

2018: the year of poo

There is no slowdown to the sale of poo in the newsagency. What started as an emoji on digital platforms, is now in games, toys, plush, squishies, cards, books, candy, posters, badges, more…

Poo has broad demographic appeal and is represented in a mix of suppliers.

While we have poo products mixed in a range of categories in the business, there is enough product to bring it all together in its own category. Yes, I am serious.

What is interesting to me is that I thought the interest in poo products would have passed by now. We have seen products available for a few years. That it is part of Christmas 2018 and the extent to which products are available is unexpected. That said, we are working to make the most of the opportunity.

Retail today is all about being opportunistic, jumping on products and categories that have a social media play or connection and leveraging this for maximum benefit. Poo fits that.

Now, to round out the interest, we need a poo magazine or one-shot.

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Gifts

Frustration at advertising inserts in newspapers

While this related to a Uk newspaper, it is interesting seeing a newspaper customer taker to Twitter to complain about the bloating of the paper with ad inserts…

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Newspapers

Lottoland noise continues

Lottoland continues to pitch regularly on TV and by email. Their latest pitch is around the $2.2B prize. I know retailers who are frustrated that the legislation did not force an immediate shutdown of these pitches from Lottoland.

There appears to have been no slow down in their operation – based on TVC airings and emails being sent.

I suspect each Lottoland pitch gets more people signed up and that has to be the core goal of the company – account openings.

Their email on the weekend also pitched a syndicate offer with a discount. It that it targets growing their reach through a familiar type of product. Lottoland is not showing signs of leaving any time soon and while their ads no longer mock newsagents, their pitch makes playing lotteries online look appealing … and that is the biggest challenge to retailers.

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Ethics

Make sure your Better Homes and Gardens Christmas unit is well placed

There is proof that front of newsagency store placement of this terrific Better Homes and Gardens display unit from Pacific Magazines, which is out now, plays a key role in an engaged  newsagency, achieving a 30.2% better sales result than a non engaged newsagency business.

The display unit is part of Pacific’s nexus program.

I like the unit as it is strong, small format, easily moved and pitching a product through which we can differentiate out business.

This is a magazine unit I place at the front of the shop as a traffic driver. Later in the season I move it to the counter. I also give it a run next to newspapers.

For no additional capital cost, this is an easy way to add margin dollars to a basket.

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magazines

Smart Aldi campaign on loyalty points reinforces newsagency loyalty pitch

I like the Aldi campaign on TV at the moment about loyalty programs and, specifically, points. I like it because it reflects my view, that points programs are often confusing and the points themselves, worthless. Here is the ad in case you have not seen it.


It is typical Aldi: fun and direct, unambiguous.

Regulars here will know more preference for discount vouchers, immediate rewards, real rewards, over points based loyalty. I switched from a magazine club card in my newsagency – buy 11 magazines and get your 12th for free (up to the value of $10) – in February 2013. It has been a ripper of a success.

While POS software and newsagency software from the software company I own offers a terrific points based loyalty program as well as integration with FlyBys and other third-party loyalty offers, it is discount vouchers that many of the 3,500+ small businesses using the software rave about.

Discount vouchers are not like pointless points based programs depicted and mocked in the Aldi TVC. A discount voucher is a real cash amount off your next purchase, off the usual purchase price. Given that the price of many items in newsagency businesses are standardised nationally, the discount is real, it is trusted.

The Aldi ad makes the point that genuinely better prices are more useful and valuable than pointless points. The experience in my own shops is testament to that. People like the ease of the program, the real discount, that there is no cumbersome process, that they understand it and that it is authentic.

Through lever settings in the software, retailers control the value of discount accrued, what it can be redeemed on and the shelf-life of the discount. This helps us ensure that the discount voucher operates as a genuine revenue driver, delivering considerably more benefit than cost. There is excellent reporting on shopper behaviour, which feeds into adjustments of the levers to maximise the benefit for the business.

This brings me bask to the new Aldi TV commercial. Their pitch is differentiating. While their main competitors, Cokes and Woolworths, each pitch points-based programs that are complex and offer little in real value, Aldi says it is every day price that matters. I think that is a message that will resonate. I say that based on shopper feedback for the discount vouchers, we have shoppers who say they have switched because of the value they get. That started in 2013 and we continue to hear it today.

I put our above average performance in core categories like cards and magazines down to discount vouchers. Data reflect this as I can see where voucher value is accused and where it is spent. magazines, in particular, benefit.

The more we differentiate our businesses from competitors the better.

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Management tip

High-value nativity set sales in the newsagency

We put this beautiful nativity set out today, in the window, priced at $279.99.

Within two hours we sold two. A couple of hours later, we sold a third. We have ordered more given that it is early in the Christmas season. We have been able to keep a set in the window until the new stock arrives in the next couple of days. This is important as it draws people to the shop.

I hear often from newsagents that they cannot sell gift and seasonal items priced at more than $20 to $30. This shop where we had this success today is in middle class Australia. Plenty of nursing homes, self funded retirees and families, where money is tight. The right product in the right location can help us see what is possible.

What we discovered is that a nativity scene purchase is an emotional purchase.l Emotional purchases are less about price.

$839.97 in revenue from this one product in a couple of hours is terrific. We have banked the margin dollars before the supplier invoice is due. The margin dollars made equal more than 1,200 newspapers or more than  370 top selling weekly magazines.

The shopper for the nativity also appreciates the rosary beard, religious cards and other religious themed Christmas and everyday gift items. The attraction from a simple window display discovers a new shopper who could shop all year round, someone who would not have thought of a newsagency for this purchase.

I appreciate a nativity set at $279.99 is not for everyone. My suggestion today is challenge yourself. At the very least, think about it. Be open to a product you would never usually stock showing you what could be, showing you how the right product in the right location could bring in new traffic.

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Newsagency management
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