I did an article for our DOS newsletter on Newsagency software which did strike a cord with a fair number of people so I decided to rephrase it slightly and put it in our blog site.

We go to meet newsagents, suppliers and key industry players all the time. We are both the most progressive in the meeting and the most backward. On those days you feel you are crashing your head against the wall about Newsagency software.

Let me be clear we have as strong interest in the Newsagency industry as you do. We want newsagents to be successful. We want suppliers genuinely to partner with newsagents. We want suppliers to provide electronic invoice data and newsagents to have the capacity to send sales history like what happens in many other industries. Because we know it is necessary.

The reality is we do have a terrific DOS system. It is better then most window systems on the market for the same role. How do I know, because we have converted over newsagents with others windows systems to our DOS system! But the reality is that it is second-rate. Many of these changes done for you now is bluntly good money after bad, what you are doing is paying to keep a horse and buggy going in an age of motor cars.

The other issue is DOS needs programmers to look after it. We used to have five programmers on the DOS version. About a two-year ago it went down to two part-time programmers. Now we don’t have enough paid software adjustments coming into the DOS system to justify even that. Mind you when we did advertise for a DOS then we got not one response. They are now almost impossible to find. So now there is only me and I don’t have enough time to do it even for the ones that people have agreed to pay.

Interestingly many suppliers make it clear that they don't care less about technology in newsagencies. They have the technology and they know what is happening better then you do in their industry. They know and you don’t, that is good for them. They will have fewer newsagents sending back product, rejecting product and querying product.

Now imagine you had
1% better sales how much potential sales slip through your fingers now
1% less computer work as run sheets, backup, reindexes all automatically
1% less dead stock though better and more detailed reports
1% better stock ordering though more information
1% better customer service for example old customer and subagents statements with full detail on demand
1% less computer work as automatic run sheets there is no doing reindexes, automatic repairs, and automatic updates
Etc etc etc

If does not take many for these 1% to start adding up to real money and time savings.

In other industry technology is where everything is happening at the moment. It is happening in newsagencies too but not where you are.

It is time to consider technology in your business. Attached is a brochure for the upgrade for Newsagency software – posbrowser for you to please consider.

/blogs/pictures//POSupgrade.pdf

It is nice to break up stock into different categories. It helps to get a feel how birthday cards sell compared to your wedding cards similarly it is good to know how your sales of fine points compared to your medium point pens are doing.

Say a supplier of stationery rings up. The conversation might go like this.

Supplier: Hello I would like to talk to you about the category field in the standard stock import file.
POS: What do you want to know?
Supplier: Some newsagents have asked us to put in categories into the stock.
POS: Okay
Supplier: What do we put in the category field?
POS: Well your categories but remember that they must be two characters or fewer.
Supplier: We don’t have this range classified but we can put anything you like in there.
POS: ?????????

The problem is there is nothing we can say at this point as except in magazines, no industry standard exists.

Now why not? It is not a big job. I don’t think we would need the suppliers as most of them are more then pleased to follow an industry standard.

Say we say there are about ten top departments for newsagents without magazines.
Say every department in the Newsagency would break down into about eight families, then each family is broken down into about five categories. So we have about forty categories per department. In practice, many more get confusing.

This could not be done in a month if the will was there!

We could probably go even faster by using a proven system, for example office supplies are all nicely categorized in
www.AMAZON.COM
Why not use that as a model to start us off?

The ABC audits of newspapers and magazines are clearly the measure used in the magazine and newspaper industry. Suppliers, whenever you meet them, almost immediate point to the previous figures and express concern for the coming one. They will often then go on about how the current changes in the audit affect them.

If you want to know what is the first concern of such suppliers look to their ABC audit figures as it will probably tell you.

Yet interestingly, although National newsagent will regularly publish the results, newsagents rarely bother with these figures.

I decided to check it out.

The ABC audit results for 01/July/2005 to 30/June/2006 by category is

So I went over some newsagents databases and came up with my own newsagent comparison. Which is below and if you want more details please click on the picture below.

As you can see the figures look different some by over 200%. Not surprising as there are so many different factors in the ABC audit figures that are irrelevant to retail sales for example subscriptions. Also some magazines may have changed categories in the latest round of changes in the ABC audit methods which may account for why Women’s interest is over while Women’s weeklies is under.

Looking at these figures, I can immediately say certain points. You may want to change your shop fit slightly. The problem is that the two sets of figures are giving different results. For example Men’s lifestyle, if you just took the ABC audit figures it is a good category. Yet look at mine and you would probably say marginal at best.

If these figures are going to be useful to us, we need some industry standard figures. This would not be too hard to do. All you would need is for 30 newsagents to fax a report once a quarter to someone say in the MPA who then spends a morning to add it up.

A while ago, I meet a couple and we started to talk. The discussion drifted to a subject of how the newspaper companies go to so much effort to make sure the public get a newspaper. I quoted an example of when an HWT sales representative went to a newsagent with a few newspapers when the newsagent rang up, that he was running out. As I pointed out it made no economic short-term sense for HWT to do that but it was an example of how large companies look at the long-term.

Then the wife stated “Well that explains why we are still getting an SUN long after our subscription has run out!” I just listened some more but I have heard this story many times. Then I replied “HWT is not in the business of delivering free papers. I can guarantee you that every paper of HWT is accounted by them. Someone is paying for that paper. What I bet is the newsagent has mucked it up and he and/or she is paying for your free paper. If the newsagent knew they would not be happy.” Then I told them that “It would be nice to tell the newsagent”, I wonder if they did?

This problem has been around since newsagencies began. Someone somewhere has mucked up the delivery. The newsagency then delivers papers for nothing. Year ago computer solved this problem. So much so probably 10 years ago this problem no longer existed.

However since then subscriptions have taken over. Now days it is so easy to make a mistake with a computer, all it takes is one wrong keystroke. Once that happens, bang you are delivering a paper for nothing. Part of the problem is now there is no-one that knows what the customer should get. Ring up the newspaper companies and ask then whether xyz should be getting a paper and the odds are they are not sure. Someone needs both your and their records to work it out. Although the way the system works now day, it is not a problem to the newspaper companies although to be fair to them they are looking into solving this problem. However expect no miracle solution in the immediate or medium future.

We regularly change people from other systems to ours. So we have installers that do little else but set up new systems for clients. From conversations, I have had with them they say in a well run shop they expect about 1 error in about 200 papers delivered. In a conversation I had with a group of them once, someone reported that on his last install he found almost 10% errors, the others quoted sites like that too.

So let us say you had 400 accounts, the installer would expect to find 2 or more errors.

So say a paper for 7 days is about $9.40 a week that works out to about $1.34 a day. Over a year for two papers a day in error we have 2 (papers lost) x $1.34 (a day) x 365.25 (days a year) = $980.00 retail minimum lost a year to that newsagency.

Say the error rate was over two a year well that I will leave you to work out at the rate of $1.34 (a day) x 365.25 (days a year) about $500.00 a year.

The solution is auditing your accounts regularly. Go over them. Yes I know it is work but for $1,000 dollars saving so you can afford a few days of work. All you do is call the newspaper companies up, ask them to send a subscriber report. Then when it comes go over your accounts one at a time starting from A. Check the account is it being paid for. If yes cross it off the list and if no put a stop on the account. Next one and keep going to Z. If you check them, you will save.

If your interested in going to the next level and getting on-line communication between you the booksellers and book publishers. Please let me know AS SOON AS POSSIBLE. Note this service is not a free service and there are charges. I believe that ECN currently charge $40 a month plus 30 cents an invoice to a user. This makes it roughly compatible to XchangeIT.

If we get enough people showing interest in this service now we can use our existing system to communicate with them. Then there will be no charge to you for that from us. The ECN will wear the extra charges. However if not, the ECN will charge and we will have to do a major development in which case there will added charges.

So we do need more users for the ECN Group for our users to subscribe now.

If you’re interested let me know now.

When the representative from the MPA came and showed me their category system, I immediately asked “Are telling me that all the major companies are using this now and it’s coming thought XchangeIT now?“. When she said “Yes”! I can still remember the WOW I felt. Instantly I thought that this is what we need as it is a great way of organizing the magazines on the shelf. You can now just look up the magazine on the computer and you will know where to find it?

However as I looked though it I found it puzzling. So I asked “How is this classification system derived?” She replied “We did research.” I asked “Can I see this research?” I received an answer suggesting they would send it out, but got a hint that it came from the US. I found that answer both intriguing and puzzling. Most magazine sales in the US are by subscription, not retail. I have been assured that most US magazine sales revenue comes from advertising. It is amazing that in the US retailers get a higher margin than here, but fewer people there want to sell it. But if anyone would do such research on retail sales, it would be the Yanks and I would like to see what their professors and wise men come up with, although it would probably be something so complex no-one could understand it.

Meanwhile, we immediately did some changes to our software. I went to a few newsagents and asked them to try it out AS SOON AS POSSIBLE. It was an instant success.

But I am yet to see this MPA research. But I have my suspicions. Magazines have two main sources of revenue, sales and advertising. One of the main roles of the MPA is selling advertising. I suspect looking though the MPA codes that they for different industries. What we are getting is the breakdown that a magazine salesperson uses to sell advertising space to clients. The reason magazine companies are determining these categories is because they use them to get advertising dollars.

Still no-one is complaining as in practise, it works great. What the MPA has done for magazines is a model for other industries like the greeting card companies. Something we are talking to John Sands now about. It is also something the newsagency industry as a group should push in all their major departments.

Our software manager is a keen but not good golfer. Every year he is off to the VANA & Industry Partners Golf Day. Which we are one of the sponsors.

We tell him, don't let us down on the course. Just beat someone, anyone.

So I am pleased to say that this year one of our clients, Gary Lovell, representing Lovell's Shepparton Newsagency, came back with the NAGA and not him.

Apparently, it was a great day.

http://www.browntrout.com.au/

The BrownTrout catalogue file is now available for download

For this and other supplier files please visit here

The reason most suppliers in the newsagency industry do not supply a file such as this is because newsagents as a group do not ask for it. Therefore newsagents have to manually type the stock items into their computers.

It should not be like that but it is.

I put together a slideshow of some types of premium chocolates.

I hope you like it.

Let me know if you want to send me some pictures of your shop to merge into this slide show or if you want some original pictures to put into your advertisement.

The printer consumables industry is a rapidly growing market. It is expected to grow at a rate of 12% a year, which represents a growth opportunity.

Today almost every business has one or more printers in the office and probably half the households in Australia have their own printers. Newsagents well positioned to capitalize on this opportunity being both local and having a business-to-consumer focus.

Now over one million homes and businesses have received this flyer in the past 30 days.

Several newsagents have told me how good it was to cut up price lists from woolworths and officeworks showing it next to this pricelist just to show they are competitive. That they are fighting back.

It is also proving very effective as people can see which one they want at home and bring in the flyer having marked the one that they want.

PETER J BEARDSLEY,

From: Beardsley's Swan Hill Newsagency, Tattersall's, OfficeSmart & Cartridge World
Sent: Tuesday, 13 March 2007 2:48 PM
To: Bernard Zimmermann
Subject: MAGAZINE CONTROL

Swan Hill Region - "Heart of the Murray"

Hello Bernard,

Only a few days ago, I emailed pos about the best way to find out certain data on non selling magazines.

Then today in the mail – el presto ! I’m sure NOT as a result of my request, but who cares !

The “New Features for Controlling Magazines is a big HIT”

Wow ! Sensational ! Well Done !!

The feature of it is its simplicity, a couple of fields to enter – that’s it. The search is very quick and the end result / outcome is exactly what is required and perfectly presented.

One could ask for no more on this topic !

Thank you.

-------------------------------------------------------
From: Bernard Zimmermann
Sent: Tuesday, 13 March 2007 5:03 PM
To: Beardsley's Swan Hill Newsagency, Tattersall's, OfficeSmart & Cartridge World
Subject: RE: MAGAZINE CONTROL

Now you have done it, I will put this in our company blog. Thank you.

-------------------------------------------------------------
From: Beardsley's Swan Hill Newsagency, Tattersall's, OfficeSmart & Cartridge World
Sent: Tuesday, 13 March 2007 5:18 PM
To: Bernard Zimmermann
Subject: RE: MAGAZINE CONTROL

FEEL FREE TO.

YOU KNOW WHAT I’M LIKE – IF ITS GOOD I’LL SAY SO. IF IT’S BAD I’LL SAY SO AS WELL!

WELL DONE

You cannot miss this opportunity to grow your business & increase your profits

How?

Come to Dynamic Supplies warehouse in Sunshine to hear how the drop Ship Program works.

This allows you to sell toners, printer drums etc to your business customers without holding stock.

For a comparison of your current suggested drop shipment prices compared to Office works prices

/blogs/pictures//drop_ship_prices.pdf

In the last 12 months before I sold Croydon Newsagency, I sold $246,530.00 of toners/ profit $48,705.00 the GP was 20%

This is big business you are missing out on

You cannot afford to miss out on this

Meet Paul Manning National sales manager Dynamic Supplies &

Robert Irwin National sales manager for Newsink

Please read your invite here.
/blogs/pictures//Invite_dynamic_warehouse.pdf

If you are serious about the book industry, you have heard all this before, so you can probably stop reading it now.

For the rest, please pick up a paperback or hardcover book. Now look at the back cover. You will see a 10-digit ISBN printed near the barcode. This ISBN has been around for over 35 years. As the last digit is a check digit, we have nine numbers. This is no small number, as a billion books can be listed using this. That is enough to cover every book ever published and every book that will be published for a long time. The problem is that these numbers have been divided into many different categories. Some categories are getting full.

A similar problem occurs if you go into a supermarket. Sometimes, what you see is some shelves empty and some packed. What has happened is that in one category, there is not enough stock to fill the shelf, but in the other category, there is too much, and it cannot fit. So some of the shelves are full, and some are empty.

The book industry decided, rather than spreading the numbers from the empty categories to the full ones, to use a barcode, turning a 10-digit code into a 13-digit code. They then looked at their current electronic data exchange standard, BISAC. They quickly saw that BISAC cannot handle a 13-digit number and should offer more information. Also, they noted that technology has moved in 35 years. The rest of the world is going XML, a format recommended by the World Wide Web Consortium, which is the closest body we have that governs the World Wide Web.

The book industry has always been progressive, so it decided to bite the bullet and fix many problems together. It would go to 13 numbers and modernise the BISAC file. So, it came up with the ONIX file, which is built with 21st-century technology.

They then turned around and gave everyone years of warning. The industry date set was January 1, 2007, which was years away at the time.

As many other software suppliers did, we booked industry meetings and discussed the proposed changes with them.

We brought up the details that many DOS users could not handle the ONIX files for those trying to understand what is involved in handling ONIX in our DOS system. First, we would have to write a link to the internet and XML. Something possible but not trivial, then significant file changes and probably almost every screen and report with stock. Changes of this extent would probably cause bugs for everyone who uses our system until we work them out. So it would have to be a new system separate from the newsagency system.

Many of the book suppliers stated they understood and that they would continue the BISAC file until mid-2008. To them, it is just another choice in their software, ONIX or BISAC.

For engaging PowerPoint presentations discussing what is happening, check out the following

<removed>

So well briefed, we worked on resolving these issues in our software. Our clients in the book industry helped us out considerably, and we got it working.

So what is the problem? Well, nothing and plenty, depending on what you want from the book and your retail software.

If you have a recent copy of our software, POS Browser, then it is not a problem.

If all you want to do is sell books, then there is no problem either. Just enter the stock as you do now and sell it. The retail systems can handle barcodes. If you want a special order, just quote the barcodes to the supplier.

In March 2007, if you want to use BISAC, I will get several different stories from book suppliers, some of which are saying,
1) We have a cutoff date for this data, and from this date, we only have ONIX
2) Our software has been updated, and we cannot send out the BISAC now.
3) We don’t know how to handle BISAC. (This is true with the frequent changes in staff and people invoicing in the book industry. New staff do not know the choices for BISAC, and it is too hard for them to remember who gets BISAC.)
4) Industry standard is ONIX, and BISAC cannot handle the new book codes. (This is not strictly true.)

Some book suppliers have stated that they are looking at the ECG committee DDO files, which are DOS-compatible. The problem here is that POS Solutions originally designed this standard for cigarettes. It was generalised for any stock item in a POS newsagency management system. Later, the ECG committee adapted it for their magazines and cards. It is not designed for books. More importantly, it is not an easy standard to use.

So what has happened is that a book supplier has a consultant look into it. The consultant gives a quote. The book company thinks about it. You ring up a month later, still thinking. Another month later, well, in one case, I rang up and expected to hear that they are still thinking about it. Still, now the company manager stated, “Now after so many years people are complaining. This proves the need for booksellers to keep upgrading their software and systems…... It is not our problem…..We are not picking up the tab”. I suppose it depends on how essential newsagents are to that supplier. The reality is that no book supplier has gone to DDO files.

So now what happens?

Well, for almost 90% of our users, probably nothing needs to happen. Most of those serious in-book problems are on Posbrowser. Years ago, they heard of the problem and started talking to us about it.

Overall, I suspect that only a few of our DOS users are affected. When I went over the list with some book suppliers, I found that very few are getting the BISAC now.

Some may seriously think of updating their system. If so, give us a call ASAP.

{link removed}

If you look at the current circulation figures for newspapers in Australia, you'll find that they are stable: some did go up and some down slightly. At present newspapers look safe.

Then I was shocked when I read part of an interview with Arthur Sulzberger Jr. He is the publisher of the New York Times, one of the world's most prominent newspapers. Responding to whether the Times will be printed on paper in five years, he stated, "I really don't know whether we'll be printing the Times in five years, and you know what? I don't care either." He then said “……that the New York Times is on a journey and its end will be the day the company decides to stop printing the paper [to make it] 100 percent digital.”

Suddenly, I thought, "Are we in this new equation? So what happens to all our businesses?"

I was not the only one to think this. At a shareholder meeting, he was asked what exactly he meant. He replied:

"We are continuing to invest in our newspapers, for we believe that they will be around for a very long time. This point of view is not about nostalgia or a love of newsprint. Instead, it is rooted in fundamental business realities…..”

All this sounds good, but wait for the end of his statement, which is:

"So let me clear the air on this issue. It is my heartfelt view that newspapers will be around--in print--for a long time. But I also believe that we must be prepared for that judgment to be wrong. My five-year timeframe is about being ready to support our news, advertising and other critical operations on digital revenue alone...whenever that time comes." [Emphasis added]

In other words, his paper is considering the possibility. I wonder whether we should, too?

Here is a fascinating short clip that discusses a future without newspapers. It is a bit over the top, but it is well worth looking at, I can assure you.

Epic 2015 (new updated version)

Click here to launch the movie

Note: In this particular post, I was debating whether or not to publish it. I showed it to Zac Varga from Pos Solutions. He was struck by it, too. He then went to Jenny from Geyers Newsagency, who was stunned too. She convinced us to publish it as she said that "it was really important to place that type of information so people realise how important it is to keep coming up with new initiatives to make our businesses relevant, just in case this became a reality here in Australia in the future!".

[link removed]

If you want to see what the next generation of signage for the MPA categories looks like press the link below.

[link removed]

I reckon it looks sensational!!

http://www.connectionswithacp.com.au/AboutACP/News/newsItem.asp?id=1253…

It actually very nice when someone writes such a nice letter to our director especially when it is Yarrawonga Newsagency which won first place in the ACP Magazines Newsagent of the Year Awards.

Zac,

Newsagents and POS Solutions Working Together

The idea of the 100% Returns Report came about because we wanted to improve our ROI on our magazine sales. We have been working in tandem with ACP Magazines on a project with regards to 'range optimisation', which simply relates to stocking the optimal product mix to achieve maximum return.

We sent some historical magazine sales data to ACP who fed it into their specific software which calculates which titles are a. profitable, b. breakeven, or c. unprofitable. These were determined to be core product, negotiable product lines, and those titles 'recommended for deletion' respectively. ACP then reported back to us with the results. We determined from the data that we could delete 208 titles from our range, which represented 17% of the titles on our database. These accounted for less than 2% of our sales!

We then proceded to write to each distributor and ask for those isolated titles to be deleted from our standing order. (This was negotiated successfully, once we convinced the distributors that we could use the space to sell more of their popular titles). Once this was agreed to, we marked each of these titles as discontinued in our stock database, which means they are automatically marked for early return upon receipt. These titles will no longer reach our store shelves.

The effect that this method has on our magazine display has been phenomenal. No longer have we overlapping magazines and cluttered shelves, a much more attractive display has transformed into a 12% increase on turnover, as compared to the same period 12 months ago. Now we have trouble keeping the stock up to the customers!

We wanted for all newsagents to have access to this handy software, so I apporached Andrew Lloyd, senior programmer at POS Solutions with the idea of writing a similar package for POS Browser. This would make it easier for agents to do this range optiomisation themselves at store level, and on a regular basis. So Andrew took the time to write the software into a comprehensive, but user-friendly format. The results and feedback has been outstanding. Newsagents now have the tools to isolate poor performing titles, delete them from their database, free up the space for better displaying of magazines that actually sell in their location, and more importantly, improve cashflow and overall segment profitability.

I look forward to working with Andrew on developing this software even further, and on other tools to help us improve and grow our business in the future.

Regards,

Darren & Gary Tribe

Yarrawonga Newsagency

It is with great sadness we advise that Maurie Lovell of Lovell’s Shepparton Newsagency passed away on Sunday 4th February 2007.

We at Pos Solutions, extend our sincere and deepest sympathy to Maurie’s wife Shirley, children Gary, Louise, and Wendy and grandchildren Kane, Jake, Rodney and Samual.

We knew him for many years as one of the most progressive leaders in the newsagency industry in technology. He was keenly interested in how the computers work. What made them tick! How they could help the industry and his newsagency better! He was among the first in computerizing just about everything in newsagencies for example the newspaper distribution, cash registers, introducing point of sale, school book, EFTpos and magazine returns. His newsagency always took the lead in development. Much of the systems, you use now were designed in his newsagency.

I noticed in any industry project, he would be there. He was always admired and respected as it was a pleasure working with such a warm man, with a keen sense of humour. He was always and friendly to people and he related to all in a non-judgmental way.

For more details of the family's wishes please see the funeral notice in today's (Tuesday) Herald Sun.

I was reading an article by one of my competitors.

As I understand it, the software that you sell, if it is up-to-date, is worth, with no data, the current buy price. Of course, this is a real problem for people on the DOS system since the buy price has dropped dramatically in the past few years, resulting in some bad valuations for this item.

However, the data the Newsagency has put into it should add to a value. Ten (10) years of data should be worth something. The business brokers should address this point.

In the real world, say you sell a newsagency. At the sale time, you will have to sign many documents. Some of these include a statement that what you sell is in working order and fit to run a newsagency. If you think of it, someone would be crazy to buy something as expensive as a newsagency without such documents. But even if they did miss it, there are consumer affairs laws, federal and state, that deal with implied warranties. This means that a sold newsagency carries with it a legal obligation that the items sold are in working order and that it can do the job! Now

1) If the data is garbage, then it is fraud. The seller could find himself having to pay the cost of fixing the data. This has happened, and the seller had to reimburse the buyer for the cost of fixing up the data by a computer consultant and the time of the buyer's accountant.

2) We also had a seller with an old software version. After selling his Newsagency, the buyer stated that after talking to a few newsagent’s suppliers, the software lacks functions that a reasonable person in a Newsagency should expect. To her, it was not working. Armed with a few statements from these Newsagency suppliers, she went off to a lawyer. The seller made a deal and paid for the upgrade from an old Newsagency system to the recent version.

I suggest anyone considering selling a Newsagency with a computer discuss these two points with the business agent and how they should approach it.

By now everyone should have received instructions on how to handle the bumper inserts and newspapers over the Australia Day long-week end.

If you have not please contact reception on (03) 95322733 stating whether you are on DOS or windows software for the relevant iPos newsletter.

One of my clients got upset as a magazine that he wanted was always selling He felt that he was undersupplied. He contacted the distributor and felt ignored. So what he did was go to the magazine and got there website. He then wrote an email to the magazine company listing his supply and his sellout rates. He noticed it got an instant reaction when the magazine company rang him, then later he saw his supply increased.