Following a thorough analysis of all costs associated with the home delivery side of his business, another newsagent has handed back the territory to the publisher. While only small, around 100 newspapers a week, the run was operating at a loss of $9,000 annually.
The newsagent proposed to the publisher that he develop his sub agents by investing in display and other materials for their businesses and that he invest in his on business to increase newspaper sales. The plan was well thought out down to a budget.
The newsagent presented his business plan to the publisher and expected their agreement given that the small number of customers could be serviced elsewhere.
The publisher responded by taking not only the home deliveries but the sub agents as well as making the retail side of the newsagency a sub agent.
While the publisher may have contractual rights, such action does not make sense. They have turned their back on someone wanting to grow newspaper sales in favour of maintaining tradition.
Publishers say they want newsagents to become business people and when one does they cancel their contract and send them to sub agent jail.
Where is the business sense in that?
In this specific situation, the publishers have demonstrated that business skills are not important. For an industry in crisis as Rupert Murdoch calls it, such action is disappointing.
Publishers need to embrace the whole pie of deregulation and not just the pieces they like.