News Ltd’s Daily Telegraph has a cover price of $1.00. Over the many years the cover price has been $1.00, wages, rent and business costs for newsagents have risen at least 40%. The fixed low cover price means newsagents are far worse off today.
Newspaper publishers in their annual reports crow about advertising revenue growth. I’d told it accounts for in excess of 85% of revenue for a title and that he cover price is about recovering the cost of retail and home delivery distribution.
Newsagents are becoming the working poor with these low and unchanging cover prices. Our cost of doing business rises each year yet the return from a crucial core product such as newspapers remains flat – falling in real terms.
Newsagents are required to provide prime real estate, invest in display infrastructure, provide access to promotional space and carry the cost of rising wages, rents and overheads for a flat return. And to remain contented while the publishers push their product to more and more non newsagent outlets.
Publishers complain that newsagents are lazy, not compliant with their requirements and lack entrepreneurial drive. The compensation from newspapers does not motivate newsagents. Indeed, it de motivates.
If the publishers treated newsagents as business people and respected and rewarded entrepreneurial drive in a commercial way then more newsagents would demonstrate their business skills. When here is no such reward it is understandable that many newsagents channel their efforts elsewhere.
I urge the publishers to rediscover newsagents and reward entrepreneurial effort commercially.
The current behaviour toward newsagents is not socially responsible.
You mention that publishers are going into more and moe non newsagent outlets with their product,but my understanding is that newsagents still get a piece of the commission for sales through these outlets. Or are you saying they are going direct to these outlets? It’s naive to think that publishers will only put their papers in newsagents when shopper patterns are changing. I would have thought most newsagents would be happy if they are at least getting something from each sale. Have I missed something here?
Ted, Distribution newsagents do, usually, get something from placing product in these other outlets. But not always in every state or territory. I suspect such arrangements will happen less with time.
By putting newspapers everywhere they become an impulse purchase rather than destination purchase – diluting them in the eyes of the consumer.
These non newsagent outlets display newspapers poorly. Retail newsagents maintain convenient and bold displays, usually. This is better for the newspaper brand.
My blog post was more about cover price than retail location. What I make is determined by the cover price while what publishers make is determined, mainly, by advertising. I would prefer a more equitable relationship with my publishers – they need me and I need them yet their terms do not reflect their need of me.
mark
We are located in a major newsagency with a number of newsagencies; plus the major supermarkets.
We are supplied by the major newsagency in the centre; and they often send us only a minor supply; and we often sell out.
Phonecalls to get additional supplies; and to increase supplies often ends in a negative way. The direct agent says that the publishers wont allow them to increase anymore.
That is rubbish. It is the main agent wanting to get the full commission rather than sharing with me. What he figures is by short supplying me; the customers will be forced to source their paper from elsewhere; and ultimately he captures the sales.
I now see Gloria Geans Coffee shops able to sell newspapers when I have no supply left to supply my customers.
I would love an agent from a newspaper publisher to come into my business and say;
“that newsagents are lazy, not compliant with their requirements and lack entrepreneurial drive”. I fear my insurance policy would not cover greveous bodily harm.
Publishers need to start rewarding newsagencies that deliver drive and sales growth. ‘Pump up the volume’ does just that, however i feel that rather than give away a free holiday, maybe the publisher could look at increased commission. Let’s face it, we are working so hard trying to make a difference that a free holiday sometimes is more a hassle than not; especially when you have several business partners
Vaughan Lawrence
Beechworth Newsagency
Australian Newsagency of the Year 2006
Victorian Newsagency of the Year 2005 & 2006