Aside from very solid gains for the Sunday Age and the Sunday Herald Sun, The Australian and the Saturday Daily Telegraph, the latest Audit results for six months to September 30 are not great. This is despite what seems like unprecedented marketing effort in the form of product giveaways and other promotions to drive sales. Through this same period we’ve also seen publishers placing product in non traditional venues in pursuit of sales – Starbucks, McDonalds and more cinemas.
A smart publisher might want to trial putting an incentive on the table for above average growth achieved by newsagents. I am certain that the right incentive for sales growth would see growth achieved. It would also move the publisher / newsagent relationship to a more commercial and entrepreneurial level. Indeed, the right incentive could be a win win.
I know newsagents who have significantly outperformed these latest audit figures yet they receive no reward. Okay, they (we) get the 25% GP from the extra sales. But on a product selling for $1.00 it’s not much. If they were to receive bonus GP on all sales if they jump a pre agreed hurdle then more newsagents would be engaged.
The current contractual arrangement is not business like in this area. Look at any other traditional supplier / retailer contract and you see incentive bonuses for performance.
The first publisher to create such a program with newsagents should expect to have a better audit result in six months time.