Newspaper publishers are demonstrating the value they place on newsagents as their distribution partners by taking long standing business from them without discussion or tender.
One publisher has struck a hotel supply deal with a company which sees newsagents unilaterally losing customers of many years standing.
Despite faithful serving which has grown business for the publisher, newsagents are not even provided an opportunity to tender for the business.
The ‘new’ hotel supply deal first surfaced in Sydney more than a years ago – where long standing newsagent / hotel relationships were torn up in favor of a new arrangement between a company ‘blessed’ by the publisher and the hotel.
This new arrangement is now hurting newsagents in Melbourne.
Newsagents affected receive a letter from the publisher informing them of the publisher decision to take the business from them and offering a token commission for short time. There is no compensation for taking, in some cases, tens of thousands of dollars in revenue.
Newsagents are hurt by more than the loss of revenue. Often they cannot reduce their costs by cutting hours because of the need to continue to deliver other product. Publishers would know this. For them, it’s all about clawing back a few cents from every newspaper delivered.
What is happening is further proof of the little regard demonstrated by publishers for small business newsagents. It is another example of the impact of deregulation.