Magazines. T-Shirts. Design & Creative Books. Stationery. Building a Consumer Brand. The Entrepreneurial Ride of a Lifetime.

Archive for June, 2009

Are magazines relevant? – The Michael Jackson affair

Tuesday, June 30th, 2009

We saw a fascinating occurrence in the magazine world yesterday.  The following statement was sent to us from the editor of Q Magazine in relation to their most recent issue.

q-editors-statement

Here is the cover of their latest issue that is about to grace our stands.

mj-q-cover

As magazineologists, we find this very interesting. It highlights that magazines can still be of journalistic value. Its not all just about gloss and pretty designs. Opinions still interest us and mags such as Q or new kids on the block such as The Monthly remain relevant despite all the online content that is available.

This particular issue of Q will sell out. There can be no doubt of that. Fans and those of us simply curious enough to be swept up in popular news will race to pick up this issue the moment we airfreight it in. Why is this going to happen when we can easily get our fill of Michael Jackson news on a plethora (been hanging out to use that word) of websites? Why are magazines still relevant?

We don’t expect answers from you… these are intended as rhetorical questions. We don’t care why mags are relevant, nor can we always articulate the reasons why we think they are relevant. We are happy to exist in ignorant bliss like Papa Bear from the Bernstein Bears Great Honey Hunt  – smells like honey, looks like honey, tastes like honey… must be honey (you are meant to replace “like honey” with “relevant” here).

The statement by Paul Rees shows how a monthly magazine can be overcome by events. This would never have happened to an online magazine. Everything is instant and changeable online. However, the physical copy of Q magazine lying on my coffee table will stimulate more conversation and debate in my household than anything I read online.

Magazines are social lubricants. Damn – was trying to avoid an articulation of relevance! The above statement by Paul Rees puts this issue of Q into context. News sites have gone nuts after the death of Michael Jackson, yet magazines will also sell more copies. It highlights to us that we live in a multi-media world. Funny how the word multi has been taken by some to mean only online. I thought the word multi referred to numerous. Are magazines relevant? I wonder what Paul Rees would say?

Customer Fun and Games

Monday, June 29th, 2009

I was sitting at my desk earlier today having a high falutin’ conversation with our wa… I mean bankers, when I had to abruptly cut the conversation short, promise to call them back, and then sit in wonder with my mouth wide open.

Our store manager was at the desk opposite me engaged in an animated conversation with a customer, and having caught a snippet, I was compelled to listen in.

This particular customer had called from Sydney. We don’t have a store in Sydney…yet. The customer had bought a car mag from a retail outlet (in Sydney) and then subscribed to that magazine by filling out the little subscription insert (damn evil things that fall out of magazines and make a mess of my shelves).

Having not yet received his magazine, he calls us (in Melbourne) and berates us for it. Natural thing to do right?

Mother of God man… what is wrong with you? When our store manager in his most polite voice asked him… “but where in all of this does mag nation come into it?”, I just had to listen to more.

The frustrating thing for me was to see how 30 mins (no kidding) of my store manager’s time was taken up explaining to this gentleman that just because we might come up first in a google search for a subscription to that magazine title does NOT mean that we are responsible for fulfilling it. Especially when he admittedly bought the subscription via the evil insert.

I love customers. No, I really do :-) Our stores would be pretty lonely places without you. But for the 1% of you out there, do you really need to bust our balls for things that could and should put you in the loony bin? With around 5,000 customer interactions a day across our stores… well, lets just say welcome to our world of customer fun and games.

Working at Mag Nation

Thursday, June 25th, 2009

For such a small, still relatively unknown brand, it amazes us that we receive between 2-3 requests a day from people who want to work at mag nation.

WHY PEOPLE WHY?

This is sooo not a glamorous job. If you want to work at mag nation because you like magazines, then you would have a rude awakening awaiting you. There is no time to read mags when you work at mag nation!!!

I have the utmost respect for the mag nation staff. It is a really tough job. Unlike many retail jobs where you are on your feet most of the day but your time is spent serving customers and “selling”, our staff are running around constantly and moving stuff. The inflow of magazines, the labelling, shelving, pulling for returns and re-shelving (out of the returns boxes) is never ending. We liken it to Medusa – cut off one head and three more spring up to replace it.

Here is the other thing people don’t realise. Magazines are HEAVY. Check this out – this is just a small part of a normal morning delivery. Someone has to move this from A to B. And upack them.

delivery

And this is our Frankie delivery…

frankie

And this our Russh delivery…

russh2

Still look glamourous?

By the way, why do the suppliers have to pack magazines wrapped with those damn sharp plastic thingies (highly technical magazine industry term)? Don’t they know that they cut our fingers to shreds. Perhaps they don’t care.

Oh, and we have to serve coffee. And deal with 324 people in Melbourne last week telling us that McGills has gone under (yes we know), and that we should run our operations just as they did (NO – they went under remember!)

Funny, despite it being such a tough job, our staff turnover compared to most retail jobs is incredibly low. May have something to do with all of us being gorgeous and having big schlongs!

Russh – a flawed beauty

Wednesday, June 24th, 2009

One of our best selling magazines, Russh, just came in this morning. As always, it will literally fly off the shelves. Russh is undoubtedly one of the most popular Australian magazines that we stock.

Russh

Mag Nation is a massive fan of Russh (despite what we are about to say). We are probably opening up a real can of worms here, but take a look at some of these images.

russh-image-31

The cover of this issue says “you’re beautiful just the way you are” on it. Yet Russh, perhaps more than most other glossies, tends to portray women at their very thinnest. As one of our staff members put it this morning “Russh is up there with Pavement (controversial and now defunct NZ magazine) for its love of boobettes” (he was referring to tiny models exposing their little chests).

Admittedly, Russh is firmly a fashion magazine and part of its rasion d’etre is to cover the fashion industry. Therefore, is it their fault that the catwalks feature girls looking more like Star Trek aliens than average women? They are merely reporting and updating us all on what is happening in this world.

However, Russh is widely read by young impressionable girls. Is this the message we want to be portraying to them? Even my wife who is 34 yrs old and weighs 48 kgs feels fat when skimming Russh. Take a look at the next two images. Is this the best way to show underwear and a Kaftan? We can’t even see the Briefs being referred to in the second image (and trust me… we tried). Is this just flesh for the sake of flesh? The question we pose is how does a magazine distinguish between reporting and throwing the blame onto a wider industry which it merely documents, and reinforcing the damaging stereotypes through its own fashion shoots? Why is one ok but not the other? Or are both wrong?

russh-image-1

russh-image-2

There is nothing new about this debate. And we are probably not the best folks to be hosting it. People far more knowledgeable have been talking about this for quite some time now. However, the last thing I did before leaving home this morning was get a huge hug from my 2yr old daughter. The first thing I did when I got to work today was pick up Russh. I had a mini freak out, especially when I read “you’re beautiful just the way you are” on a cover with these images contained within.

How shallow are we?

Tuesday, June 23rd, 2009

What a leading question! Especially when this post is all about asking you for feedback.

I am conscious that most popular blogs are as visual as they are written content driven. Being in the magazine business, I would have thought that we would never have been short of glossy imagery to fill our blog pages. Yet, till now, I have really struggled to find images relevant to what I have wanted to say.

Are we losing readers because the blog “looks” heavy? Should we do more posts about cool magazines so we can throw in cover images and break up the text heavy format? Or should we not give a damn and keep on doing what we want?

TAR

Does the question boil down to whether the mag nation blog is for you or us? Some of you might say yes, but lets be brutally honest here – if no one finds this blog relevant and doesn’t read it, then there is no real point. I love the process of getting the collective mag nation consciousness down on paper, but I could just as easily talk this through with the mirror. What drives us to blog is interaction with you, and this can’t be achieved if no one reads it.

So, back to my original question – how do we get more people to read us? And, how do we keep you interested in reading us?

WAD (We Are Different)

See, some random magazine images definitely make the thing more visually attractive. For a business that is so dependent on visual culture, does this need to permeate our blog? Your thoughts would be appreciated.

The mag nation Newsletter

Monday, June 22nd, 2009

There are so many facets to the mag nation business, but one of my favourites is the mag nation newsletter. We send this out to our newsletter database, which currently only numbers around 5,000. In the scheme of things, this is tiny. Some of our competitive friends have lists around the million mark (no kidding). Still, we have built ours up organically – mainly via store sign ups on a grubby piece of paper. (Funny how more elaborate in-store tactics to build up the database fell flat, but the simple coffee-stained list on a clipboard worked best). We are also experimenting with new ways to build our readership. Last week we sent out our latest newsletter and offered the chance to win free Moleskines in return for some potential reader names. Online sign up is now also possible. And strongly encouraged!!!

I am not sure that our newsletter will ever reach massive numbers, and the reason is that they are not purely functional. Most retailer newsletters these days are all about offering products and discounts. They are all geared to woo you. Little creative effort goes into them, but they just whack in whatever is cheap at the moment, and then push. There is a reason that Junk Mail is called Junk!

Ours are very different (you can see our past issues here). We only highlight a small number of products, and most of these products are quite niche, with what will be a very low potential audience. Yet, this is who we are. And our newsletters are the very personification of our brand. They are to be read as well as be clicked.

So I am therefore not sure whether there is a place for our newsletter amongst the masses. We are told that our newsletters are hilarious and highly entertaining. We certainly piss our pants when we re-read them, but this is where things get highly subjective. Save $10 is a universal language, but humour, entertainment and irreverence is in the eye of the beholder. We definitely save you dosh as well, but with a style that may not appeal to everyone.

That said, the style of our newsletter does not represent the dilemma discussed in an earlier post. This particular issue is clear as mud for us. Our newsletter is a window to our soul. Whether it goes out to 100,000 people or just Mr McGoo and his cocker spaniel, we will continue it in the vein it has started. Call it selfish if you like, but we write our newsletters to appeal to ourselves. As long as we chuckle and find them enjoyable, there will be a Mr McGoo out there somewhere.

A Bad Decision

Thursday, June 18th, 2009

As a result of a decision by Australia Post this week, more magazines are going to die. Aus Post decided to lift the rates of their Print Post and Parcel services, and as a result, the cost of posting out subscription copies of magazines is about to rise. In a tougher economic environment, many mags have come to rely on their subscription profits to keep themselves afloat.

We find this decision by Australia Post to be baffling. We can appreciate that they too are under cost pressures and that a price rise, like with any business, is calculated to maximise profits. That is a legitimate objective for Aus Post who are not a charity but have a commercial mandate. However, what is so surprising in this move is that Aus Post has gone on record as wanting to push magazine subscriptions as a strategic priority. In other words, subscription volumes are of real importance to them. You don’t have to be a rocket scientist to realise that higher prices lead to lower volumes.

We feel for our publisher friends. It could be argued that this price rise is a good thing for mag nation and other mag retailers, as subscriptions represent repeat sales that will never make their way into one of our stores. Yet, we feel that too many players in the magazine industry have taken self interested short term perspectives for too long. Yep, thems a fighting words.

If publishers can’t survive, then we will have nothing left to retail. Lets stop denying that this entire industry is under threat. If all the industry players jostle each other for position to see who can get a bigger share of the pie, then who is being vigilant about the pie rapidly shrinking. A big slice of nothing is still nothing. Retailers, publisher, distributors and the service providers such as Aus Post should all be working together in times like this. Yes…and pigs might fly.

The Print Post product is actually one that has frustrated us at mag nation for quite a while. It offers subsidised postal rates for print publications where they send 100 or more OF THE SAME product. This is intended to incentivise publishers to send out magazines via Aus Post. Yet, we have questioned why it should apply to the same product and not across aggregated magazine product. We send out more magazines to subscribers than many small publishers, but they are magazine titles from the long distribution tail. The ones and twos add up however, and all in all, we provide more business to Aus Post than many publishers. Why shouldn’t we get incentivised in the same way, which in turn would lower the cost to you and push volumes even more? Apparently the higher powers at Post are looking into this for us. I am not holding my breath

Oops. See what I have done. Slipped into a self interested rant about our own profitability. Its very easy to do…

To all our publisher friends, we know you are hurting. Your various industry bodies are campaigning and lobbying Aus Post to change their minds (there are even whispers of involving the ACCC), but we all know that this price rise won’t be reversed. The ultimate victim in all of this will be the consumer. Only an idiot would deny that mainstream print is under severe pressure, and this decision by Australia Post has just increased that pressure. Subscription prices will rise, and in an elastic market, volumes will drop in higher proportions. Certain mags will die, and you, the consumer will see much less choice on the shelves.

The Sales Rollercoaster

Wednesday, June 17th, 2009

Every June sales tank. As regular as clockwork, fewer people come in to buy magazines and the heady sales highs of April and early May fade into memory. Why is this? If anyone should have the answer, it should be me or someone working for mag nation, but it is still a mystery. Ok, so it is cold, but so are July and August, which are not as bad. And it is not just at one store, but across all stores. June is the worst month of the year.

As I go through my fourth June, at least I know what to expect. I don’t feel so depressed. Yet, even after having lived through the ups and downs of retail, I still get affected by the rollercoaster. We have a great day in the stores and I come home elated and pumped. We have a poor day and my mood slumps.

I remember my uncle and business partner telling me one month in that I would need to get over this and learn to detach myself from the daily ups and downs or I would go insane. He must be a stronger man than I am, as I have never, once, been able to do this. He is right of course (as he is with most things – his most annoying habit) because having your very existence contingent on external factors beyond your control is not healthy. To be in a filthy mood because it is raining on a Saturday when people don’t have to go out shopping and questioning why God couldn’t have made it rain on a Friday when people are out and about irrespective… well, this ain’t normal. Not every week for 3 years anyway.

Worse is when there is no rational explanation and sales go down. At least with the weather I have someone to blame.

Granted, there are the unexplained ups as well, which equal the downs, but a rollercoaster is good fun in small doses. Imagine spending 24 hours a day on a rollercoaster. Where would you go to take a pee and how would you eat your soup – it would keep streaming past your face. I digress…

Funny how I can’t detach myself from our daily sales, yet I am Steady Eddie in relation to the big things. About to run out of money – no probs, we’ll find some more. Major overseas supplier goes under –  no worries, we’ll find a replacement. Our trusted financial controller spends months using the company credit card to play online poker – happy to fire his arse and get in someone new. We get named most innovative retailer of the year in 2007 and Best Young Business of the Year in 2008 – no big deal.

Through all the major stresses and external accolades (and these are perhaps some of the milder ones!), we have managed to maintain a level head and a sense of calm. Yet, sales go up by 10% on Thursday and I am skipping home. We have a shocker on Tuesday and I start thinking about a garage sale to sell my kids toys and my wife’s shoes to fund next week’s operations.

The easiest solution to all of this would be for me not to have to change, but for you to change. Yes you, the reader. Everything would be fine, despite me remaining overly sensitive to the daily figures, if they only continued to go up. Imagine that – I would be on a permanent high. And this would be possible if all of you bought even more from us. You might have to coordinate so that not all sales came in on one day, but kept on rising, but it wouldn’t be that hard. So, the likelihood of me bringing up my breakfast is in your hands. Not where I thought this blog post was going to end up when I started it, but we’ll call this creative license.

What is our favourite magazine?

Tuesday, June 16th, 2009

We get this question constantly. Why the hell would we ever answer it! What do we have to gain? First, it is virtually impossible for us to pick just one favourite when we love so many. Also, we go through phases like everyone else where new favourites come and go. Moreover, to say one mag is better than another is a highly subjective task, and people look at the made up titles on Ravi’s and my business cards (they say “Chief Magazineologist”) and expect us to bring an element of objectivity to the question. Well, sorry. No cigar.

Second, giving voice to our subjectivity would only insult a lot of friends. Many of the guys we deal with think that their magazine is streets ahead of everything else out there and they find it hard to imagine that everyone else doesn’t see the world as they do. We love this about them.

Their passion defines them and their publications. For us to say we love Pillow Fighting Monthly more than anything else only puts the publishers of Nose Piercing Weekly off side. And when we rely so much on the goodwill of all these crazed but loveable characters, why would we do that?

So please don’t expect an answer when you ask us what our favourite magazine is. It is like asking which our kids we love the best.  Or like that dreaded question from a girl re whether this pair of jeans makes her bum look big. You may have an opinion but any answer you give will get you in trouble.

The Mag Nation Dilemma

Monday, June 15th, 2009

Mag Nation is constantly faced with a dilemma. We try to be different and non-commercial in the way we do things, and yet, the reason other companies are commercial is….well…. it is commercial!

Our website is a prime example of this. Increasingly we are using it to engage with you, our audience. We think our website is fun and perhaps a little quirky (eg the magdentifier as seen below). Yet ultimately, it needs to sell lots of magazine subscriptions, books, t-shirts and stationery items if it is to help us to survive.

the-magdentifier
Mag subscriptions have been growing rapidly, and we have high hopes that the other products making up “the third floor” will prove popular. However, we know that we still turnover less than 0.5% of the volume that the large online players do, despite the better service that we think we offer.

We can’t afford the mass brochure drops or tv advertising that they do, and we don’t have a team of 20 people dedicated to search engine optimization, affiliate marketing and all the other stuff that we have had to rapidly educate ourselves on.  All we have is our personality, and as much as Billy Joel loves us just the way we are (!?!?), personality doesn’t cut it in from a “hey we exist” perspective compared to a brochure hitting every physical mail box in Australia and New Zealand 3 times a year. Fewer than 1 in a 100 people in our home cities of Melbourne or Auckland have even heard of us, let alone the rest of Aus and NZ. So how do we build awareness of what we have to offer, without spending a fortune (that we don’t have) to “buy” awareness?

When we look at the other large online players, their sites are inundated with commercial offers. Buy a sub to magazine X and win a set of steak knives. Buy two subs at the same time and go into the running for a trip to the moon. You get the idea. As magazine purists, we tend not to care so much about the free gimmicks. That said, these other guys are probably a lot smarter than we are, and I’m pretty sure that they do it because it damn well works.

And so here we are back at our original dilemma (don’t you love it when the ramble of a blog post does a full circle?) Should we be more commercial to sell more subscriptions? We have given it a try… Currently if you subscribe to one of 6 different mags, you go into the running to win a free trip to Paris. Does this float your boat? If you are reading this blog, then you are obviously in the 1% who knows who we are. To generalise, you are more likely to be passionate about mags than the 99% who have never heard of us. Would this chance to go to Paris make you more likely to purchase something? Or does it stink of commercialism and turn you off?

Ok – too many damn questions. We have to walk a fine line and perhaps the trade-offs between commercial strategies that keep food on our table vs maintaining our personality and integrity don’t actually have to be trade-offs. Maybe the real answer is to keep doing what we have been doing – try lots of random, different things and those that work get put down to my genius while those that crash and burn were ideas that can be attributed to our Operations Manager!