We stock about a gazillion different magazine titles as well as stationery across our 5 stores in Australia, New Zealand and online.

Archive for the ‘Entrepreneurial’ Category

Why we sell things that aren’t magazines

Monday, January 10th, 2011

If you’ve visited any of our Australian stores in the last few months, you will have noticed that we increasingly have more shelf space dedicated to things that aren’t actually magazines at all.

We haven’t reduced our range of titles—to the contrary, we’ve continued to actively expand it—and we’re not dedicating any less floor space to magazines. Rather, we’re shuffling things around and installing extra shelves (thank you IKEA) devoted to displaying graphic design books, Moleskines, steak knives KeepCups and other cool bits and pieces that we think you might like.

But why, you might ask, is the world’s only magazine superstore going to such an effort to sell things that aren’t magazines?

The long and short of it is that selling mags alone is not an easy way to make a buck!

Like book stores, magazine retailers are very quickly diminishing. In today’s world, basing a business entirely on print media is, risky, to put it mildly. That said, magazines are difficult to sell at the best of times. Not only do they have a very limited shelf life, but they also require an extraordinary amount of handling and processing.

Newsagents are keenly aware of that fact and it is for this reason that many newsagents look more like greeting card shops or lotto outlets these days than the printed media specialists of yesteryear. Becoming your local newsagent is our absolute worst nightmare. Our entire business model is founded upon being the antithesis of their “This is not a library” signs, bald spots and impatient stares… not to mention complete lack of comfortable seating, free wi-fi and fresh espresso*!

But we love magazines. Always have, Always will (please, indulge us, and imagine that last line spoken like a craggy Clint Eastwood with a squint in his eye, cigarette in mouth and gun in hand). We’re absolutely determined to continue offering you the biggest and best range of magazines in the world. It’s a difficult proposition, but we know it can be done.

So now, when you wonder why all the model train, witchcraft and ‘alternative living’ magazines have been moved upstairs and replaced with notebooks and patterned sticky tape, well, you know why.

* Sydney readers, we’re still working on getting a coffee machine into our Newtown store. It’s more complicated than it seems but we’re working on it, so hang tight!

Mag Nation’s Founder says goodbye

Wednesday, July 14th, 2010

This is the last blog entry I will write as the MD of mag nation. Monday morning, I sent out the following email to my entire contact database:

Dear Friends, Colleagues and Professional Acquaintances,

It is with both a tinge of nervousness but moreover great excitement and anticipation for the future that I inform you that this coming Friday is my last day at the helm of mag nation.

I co-founded the company 5 years ago, and have overseen the creation of a wonderful challenger brand that has built a deep cult-like adoration amongst its fans. The time has now come for me to seek out my next challenge.

I leave the day to day management of my company in the hands of my wonderful team who have developed out of sight. mag nation is performing better than ever before in its history, and I remain convinced that our industry disruptive model and innovative approach towards a staid and tired model has the most exciting future.

I will obviously maintain close involvement with the company in an advisory capacity. Even though I have decided to seek out a larger playing field, mag nation will always be my baby and my brand, and I remain emotionally connected to it. I will always be mag nation’s Founder.

While I will retain and be checking my mag nation email address, I have set up a new one: XXX My phone contact XXX will remain the same.

My co-founder Ravi Pathare will continue as the overall Managing Director of the Company. Vali Valibhoy who is our Operations Manager here in Australia will be the key point of contact for our Australian day to day operations, while Oliver Palmer will be the point of call for all things marketing and website related.

I would like to thank all of the people who have touched my life in some way during the creation of mag nation. I encourage you to continue your support of mag nation, and look forward to maintaining contact with you as I continue my professional journey.

Best wishes
Sahil

Other than my 3 children, mag nation has been the most amazing thing I have ever been involved with. As those of you who read my first ever blog entry will know, I have put my heart, soul and every ounce of my being into mag nation. I will miss it immensely and feel that I am leaving behind a part of me. The character, tone and values of the brand have been an extension of myself.

Ultimately however, what has made mag nation has been all the customers and supporters who choose to interact with us as opposed to the other options presented to them. To every single person who has ever walked through our doors, bought from us online, tweeted us or simply mentioned us to a friend (including the infamous Angry City of Melbourne Taxpayer), I am indebted to you.

Thanks to all of you for what has been the most amazing journey. One that for me personally is only beginning (I am still just 36 years old), but that is about to enter a new chapter.

Sahil

A drop in the magazine ocean

Tuesday, June 15th, 2010

Coming into the mag nation office every day, it’s easy for us to be complacent about the fact that we’re the world’s only magazine superstore. Seeing customers stream through our doors looking for the latest issue of their favourite mags, we take it for granted that people seek us out for the best in hard-to-find and niche printed media publications.

But in reality, hardly anyone knows that we exist.

When I started working here just under a year ago, when I met new people and we’d invetiably get to that small-talk staple of how we fill our days between 9am and 5pm, I’d say simply, “I work at mag nation.”

Given that our flagship store has been on the corner of Elizabeth and Collins Street in Melbourne for the last five years and having certainly been my go-to for mags and books for pretty much that whole time, I was dumfounded to see just how many blank looks I’d get in return.

The fact is, we’re a drop in the ocean, even among people who really should know who we are.

This was highlighted to us recently when we partnered up with Daydream Lily to give away a subscription to Lula and hoards of the 500+ commenters basically said, “I love Lula but I have no idea where to get it.” Well, um… us?

Lula is one of the magazine titles that sort of typifies what mag nation does. It is a niche, creative fashion title with cult appeal to an urban savvy and creative community.

If any group of consumers should know all about us, it should be Lula lovers (we sell around 80% of the current number of airfreight copies of Lula that come into Australia!!!). Yet despite the massive in-roads we have made with our brand, we still have lots of work to do. On the other side of the coin, perhaps the way to look at it is that we still have heaps of growth potential.

Most of the customers who interact with us online think we are a large brand. Thankfully, the occasional reality check such as what we saw from the Daydream Lily post remind us of something called “selective user bias”.

And now, when people ask me where I work?

Let’s just say I have to get all evangelical about it.

Scathing Criticism of Mag Nation

Wednesday, May 19th, 2010

Someone has just written the same comment on 7 of our most recent blog posts. Rather than approving the comment 7 times and hijacking the conversation on those posts away from their intended topic, we have decided to dedicate a separate post to this particular comment. It is replicated (in full) below:





What I would like to know “Mag-Nation” is how a NZ company (which all the profits go back overseas) can claim $30k in government grants for a website from Melbourne city council, (funded by the tax payer) to run a glorified newsagency under the label that its an innovative business?

With content in your “about us” section like – “All the girls who work at mag nation are gorgeous. All the boys have big schlongs.” I’m shocked that the Melbourne City Council thinks its a good idea to fund such blatantly sexist, boorish content.

Not only that, this “Undies Monday” is STOLEN from Gaslight Music who used to have a once a year nude event to raise money for public radio!

So in short – $30,000 of taxpayer funds for a disgusting sexist website, and stolen ideas from other companies.

“Mag-Nation” does not constitute an “innovative” business. More like an innovative way of ripping off other peoples idea’s and wrapping them up in SMUT to make corporate profits that get sent overseas.

WASTE OF TAXPAYER DOLLARS!!!!

Signed:
Angry City Of Melbourne Taxpayer.
(who doubts this message will even be posted in its entirety)





A few thoughts in response Mr/Mrs Taxpayer.

1. It was 15K, not 30K

2. We “started” in NZ, but we are an Australian registered company. The NZ company is a subsidiary of our Australian Parent company. All profits (or losses) stay in the Aus entity.

3. We never claimed Undies Monday was original. We in fact openly admit the inspiration came from Gaslight. See this link and the comments.

4. The Australian Retail Association also awarded us “most innovative retailer” in 2007

5. Everyone is entitled to their opinion. We respect yours, and your right to not shop or engage with us. The City of Melbourne obviously had their own opinion as well.

6. We did post this in its entirety.

The Yoda of Magazines

Monday, February 15th, 2010

Meet Ravi. He is one of the two founders of mag nation. Much less in the public eye than I am (Sahil), he is every bit a driving force of mag nation as is the guy writing this blog. He also happens to be one of the smartest blokes around.

Ravi is a medical doctor. Moreover, he is a Pathologist. So, when he’s not busy building a retail empire, he diagnoses rare diseases in his spare time, which is a useful skill to have in this industry. Okay, not really.

When he migrated to New Zealand from India, the New Zealand government wouldn’t recognise his qualifications. (Which is pretty crazy stuff when you consider that could have taught many of the local doctors a thing or two about Pathology, having dealt with all sorts of weird diseases during his time on the sub-continent. But, I digress…)

Because he wanted a different life for his family, Ravi left India and gave up years of study and a thriving private practise in the process. Unable to practise medicine in New Zealand and with no non-medical business experience behind him, he bought a small convenience store called Mega Mags in Queen St in Auckland. From there, the mag nation concept was born.

This bloke is a rocket scientist. Genius mind. He is also my uncle. And he is incredibly precious to me. My second child’s middle name is in honour of the guy.

When we began to plan what would later become mag nation, he did everything he could to talk me out of it. He told me that I had a real future in the corporate world, family responsibilities, and that I shouldn’t risk everything on a dream. Only when I proved my stubbornness did he relent and welcome me to his world of being broke.

At 55 years old, Ravi is no spring chicken. In fact, a publisher we often deal with referred to him recently as ‘the Yoda of Magazines’. He is known globally (he has spoken twice at Colophon) and there are few people with more knowledge of magazine retail supply than he has. Yet, he is also remarkably young in his outlook.

For a brand that takes such a different and at times irreverent approach, people are often surprised to find out that neither of the founders are in their 20s.

Virtually all the mags that you see in mag nation are there because Ravi decided that they should be and could be. He is the sort of bloke who can memorise spreadsheets worth of data and regurgitate pricing and margins at a moments notice. He is also the guy who when discussing creating subscription terminals in-store and how to avoid theft of equipment, suggested that we glue the mouse to the table. It took him 30 seconds to realize why the rest of us where wetting our pants. We all have our slips.

More than all else, he is a good bloke. If you are going to bet your entire future on a business, might as well be with someone you trust. There is no blame, recrimination or singular credit amongst the two of us. Though all of this is totally irrelevant to the average customer walking into our stores, I genuinely hope you feel something intangible but special when walking into a mag nation store.

If you do, then you are feeling the presence of the Yoda of Magazines.

(‘Ravi Yoda’ illustration by the inimitable Tyson Savanah from our Elizabeth Street store.)

Freebies and a request for help – we need your opinion

Wednesday, December 16th, 2009

I need your help. As you would expect from the mag nation chief magazineologist, I keep an eye out on what other magazine subscription sites are doing. Christmas is the key time for mag subscriptions, and every subscription provider dials up the rhetoric on offers and freebies.

We too are offering free stuff if you subscribe to magazines through our website. We do it because we think customers like it.

However, where we are different is in terms of size and independence. We are not affiliated with any publisher. Nor are we a massive corporate who can afford TV advertising. This is where I need to ask your opinion…

The other guys are offering a chance to win a car, a fantastic exotic holiday, a trip to the moon etc… But only one or two people win this. Most of the mag nation staff don’t even own a car, so we definitely ain’t giving one away. Therefore, we are offering what we can… 1 in every 100 subscriptions purchased from us is for free. This means that lots of people will win something small, as opposed to 1 person winning something big. We have already contacted a bunch of people and delighted them by telling them that their subscription purchase has been fully refunded to their credit card.

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Does this work better for you? Or do you prefer the tattslotto type odds and pay off? Or maybe you don’t give a shit and the freebies are just a distraction? What do you think we should be doing from a marketing perspective to entice you to consider us over and above the others? Please keep in mind that we have very limited budgets!

Your thoughts would be greatly appreciated. While it is too late for us to change anything this year, perhaps we need to start saving up for next year to offer you a fantastic camping trip in my mum’s back yard…

Hello, Sydney!

Tuesday, October 20th, 2009

While we often post on this blog about the trials and tribulations of the magazine business, this is not one of those posts.

This post is simply to tell you that OUR FIRST SYDNEY STORE IS OPEN. That’s right: the very first magazine superstore north of Auckland has officially opened its doors, right smack in the heart of Newtown at 155 King Street.

mag nation – Sydney (Newtown) 155 King St.

mag nation – Sydney (Newtown) 155 King St.

mag nation – Sydney (Newtown) 155 King St.

We opened up on Saturday morning and promptly lost our first sale (a Moleskine) because of a temperamental  EFTPOS machine but swiftly followed it up with the successful sale of a copy of Tattoo Savage.

The Sydney store doesn’t yet have the full range that Melbournians have come to expect, but never fear, the rest of our range will be filtering in over the coming weeks. As will coffee and a nicer looking shop front. Even so, we think that our curious New South Welsh friends will be pleasantly surprised to find that they can now buy Old Tractor, Warship International and Line Dancer under the same roof as all our other old favourites like Frankie, T-World and Sneaker Freaker.

If you are in the area, come say hi, and make sure you also check out the upstairs area. Sort of needs to be discovered, but worth the flight of stairs. Oh, the King St store also offers you free wireless.

Thanks to everyone who has made us feel so welcome in the area. More importantly…

Go forth Sydneysiders, and buy magazines…

Frustrations

Thursday, October 15th, 2009

We are about to open our 6th store. Actually, given we have closed two mall stores in the past, this will be the 8th store that we have opened. You would hope by now that the process would be somewhat streamlined.

Well, it is from our side, yet it remains ridiculously bureaucratic to do something as simple as secure supply of magazines into our new Sydney store. With two of the three main suppliers, it is all plain sailing. We have long term relationships with them, they understand what it is we do, and when we open a store, we simply tell them to start stock piling mags for us so that when we open the doors, we start with a decent range. Our range obviously builds over the first few months as new titles come in, but at least we can showcase something impressive on day one.

However, with one of the three major Australian magazine suppliers, we have to apply for supply and fill in details more relevant to a newsagency. They then have a meeting at irregular intervals during which they decide on whether to approve all applications before them. Until this meeting takes place, there is no way that magazines from this particular supplier can be put aside in a stock pile for delivery prior to opening.

In practice, it means that we will open the doors to our first Sydney store (in King St, Newtown – near Missenden Rd) and be without some standard, mainstream magazines. The Sydney public does not know us as well as the Melbourne public, and our credibility as magazine specialists will be at risk when customers’ first impressions have them asking questions about where are some of our bread and butter titles.

I called this one supplier, but there is no way they will bend the rules and allow common sense to prevail. We are not a new, tiny mum and dad operator. They know us. We have history with them. They know our business model and appreciate what we are trying to achieve in reviving the magazine retailing industry. So why can’t they help us? Because bureaucracy gets in the way. Our application will be approved. They know what titles we want. But they cannot preemptively stockpile for us. We will open without putting our best foot forward in terms of our magazine range. We will get there in the end, but in the meanwhile, I am one very frustrated magazineologist.

Engaging Our Customers – Give Us Your Insights

Tuesday, September 1st, 2009

Tomorrow morning I am speaking at the Melbourne Spring Fashion Week Breakfast Series. I have no idea if tickets are still on sale or not, but you can check out the program and enquire here if you are interested.

I was somewhat surprised by the invite. Despite the persona underlying mag nation, I am probably one of the least qualified blokes to speak at a fashion event that you could ever imagine. My super stylish Spanish wife can’t stop laughing at the thought.

Luckily, I have been spared from embarrassment thanks to the topic up for discussion. Here is what is says on the MSFW website:

An exceptional line up of speakers will share their experience and knowledge on what it takes to create and maintain customer relationships throughout the retail lifecycle – from the temptation and seduction of courting new shoppers, through love and marriage, and how to ward off separation.

Learn more about the most evolved, savvy, feature-rich retail brands and online entrepreneurs and how they connect to their consumers’ desires at every touch point to seize their brand’s potential and build relationships that last.

We feel honoured to be thought of in this light. However, they have definitely put us in the wrong category. There are four breakfasts; the first on Temptation and Seduction was today, while tomorrow is Love. We have some really nice relationships with our customers and I would be happy to admit that with some of these people, there is genuine love which has gone beyond the courting stage. However, the vast majority of folks have never even heard of us. Ask outside the fashion and urban savvy crowd, and people will think that mag nation sells mag wheels (we still get calls about this).

We think it is a little premature to place us in the Love category (hopefully one day we will justify this tag). That said, I will do my best to talk about how we try to engage our customers. The problem with this is how do you talk for 15 mins on the following points:

•    We talk to you

•    We listen to you

•    We respond to you

•    We enjoy ourselves and let you be a part of it

•    We are honest and open

The first 3 points are customer service 101. There is absolutely nothing new in any of that. Perhaps the greatest impact has been the last point. We constantly get told that we are really open and that people like this as it gives them insight into the personality of who mag nation is. We received massive amounts of feedback both online and offline from our first blog post, and perhaps this is the sort of thing we do a little differently from other brands.

In any case, I better now work out what I am going to say tomorrow. I think it will be a pretty discerning crowd, and 5 bullet points ain’t going to cut it. If anyone has any suggestions about what works (or doesn’t) in terms of our engaging with customers, please let us know. A very dangerous thing to ask in light of this particular post, as it will smell really bad if we get zero comments, but perhaps this is all part and parcel of us putting ourselves out there and taking risks.

T-shirt exhibition being held at mag nation

Thursday, August 27th, 2009

As part of the Melbourne Spring Fashion Week, mag nation is holding a T-shirt exhibition on The Third Floor at our Elizabeth St store. This is an official part of the program people. It ain’t just us freeloading on an established event to push our own agenda. Well, perhaps there is a little of that too, but hey – most of you don’t even realize that we sell T-shirts and its about time you did.

Some of the best designer T-shirt brands in the land will be hanging their finest all over our walls, and it will be a sight to be seen. When we say “their finest”, we are referring in many cases to “one-offs” or next season’s never-seen-before designs.

And lending his weighty credibility to the entire event is Eddie Zammit, founder of T-world Journal and all round T-shirt nut (he owns over 1,400 T-shirts – we kid you not). Eddie will be speaking about T-shirt culture this coming Tuesday (1st Sep) between 6:30 and 7:00 pm on The Third Floor. If you would like to come along, you need to RSVP at info@magnation.com. Given the interest this talk has already received, I am not sure how we are going to fit you all in, but not to worry – we’ll find a way.

Eddie Zammit speaking at mag nation

If you can’t make it Tue night, you should at the very least get down during the week (or go up given you have to climb 2 flights of stairs) to check out the Ts. Just some of the brands represented include:

10DEEP
ALIFE
BKTM
Boski
Burn
Graniph
MKTW
Nique
Syke
Triumvir
Worn Free

This is going to be the best T-shirt exhibition in the history of the world* We seriously suggest you don’t miss out (the T-shirts will be for sale but we have 1 item of each design only so you need to be quick) – you will be kicking yourselves otherwise. Sydney – this is the sort of random stuff you can expect from us when we arrive there shortly. Yes, we are the galactic  experts in magazines, but we do other gunk too.

*Disclosure – we are blantantly exaggerating, but “damn fine” didn’t sound as impressive as “best in the world”. As long as we disclose it, this is alright isn’t it?