There is a discussion going on among some newsagent associations as to which type of business can join. This discussion made be curious about whether newsagents would like sub agents to be able to join a newsagents’ association.
You can only vote once – we IP address check.
What is classed as a sub-agent?
I’m a sub with papers, but operate a full newsagency without the paper round.
I’m not a seven eleven, milkbar or service station. I look and operate like a newsagency but because of the newspaper zones etc, I’m still classed as sub-agent.
That is the question, what is a sub agent. We are a retail only newsagent but are classed as a subagent by the paper companies. Are newsagents only the ones that deliver newspapers, if so then in a few years there will be no newsagencies. We have been operating as a newsagency for 19 yrs, but gave up our runs 18months ago, are we now no longer a newsagency?
if newsagent associations can become news retailer associations, to accept memberships from other channels, then we will have much boarder membership basis.
Current membership fee may be too expensive as I chated with many other non-members. If we can have better fee structure based on larger member base, then many non-members newsgents may join the associations.
Cheers,
Sunny
If you are after a broader membership base then the National Retailers Association (NRA) would be appropriate. If you want a Newsagancy focus, trading off the public’s inherent perception of a Newsagency then you should retain a narrower memership so as not to erode the goodwill already developed in the word Newsagent. The best thing that really could happen to Newsagents would be for one commercial association that had a pseudo franchise appearance, but with a core majority shareholdings held by the member newsagents…The rest could be listed publically and traded to increase their yield….and increase their bargaining power with all suppliers, landlords, etc. The key is for the members to have real ownership, not just membership…ownership inspires involvement……This is where the major retail groups such as Newspower, Nextra and Newsexpress are close to the mark, but miss the major hurdle…ownership …
Hi Mark,
Nice to see there is some discussion going on amongst associations but this is a furfy. Any chance they can discuss a unilateral position on all the issues rather than what constitutes their survival. Perhaps take some of the $1 million commission from Bill Express to represent the members in a class action.
If they don’t start to get the real issues right, there will be no newsagents, subs or otherwise, to represent.
Newsagents need to join associations because they are relevant to the industry and are offering levels of unionised support – not because you fit into a box of Newsagent v Sub v look alike.
This is where VANA is a joke. Victorian Authorised Newsagents Association. Authorised became extinct in the 90’s and yet they still cling to that past. It exhibits their irrelevance to today.
Sure let’s have a poll.
1. Are you happy with your current state and national representation?
2. Are you obtaining value for money from your state or national association?
3. What future do you see for the current state/national structure?
Have a good day,
Steve,
A commercial association is NOT what is needed. As soon as a body develops a commercial focus, their ability to perform representative and other non-commercial roles is inherintly diminished. This is what is happening now and we ned to enure it doesn’t happen again.
On the ownership issue I agree from a franchise perspective. Other franchises, or quasi-cooperatives, from different industries do the whole membership/ownership thing well. I do think, however, it would be more difficult in this industry – especially in getting newsagents to invest capital. I will note that newsXpress and Newspower both act in much the same fashion as a newsagent-owned quasi-franchise would when it comes to financial operation – money comes in and is reinvested back into the group in some form. The ownership thing then becomes more of a mindset, rather than a change in how things actuall operate.
Lorraine,
I agree – “Authorised” is extinct. Although im not sure we could ever really call it alive.
You make a good point that the focus should be on what the associations offer, rather than who is part of them.
The definition of newsagent is natuarally becoming an increasing diluted one. I see no problem with an increased membership base to reflect that. Not that I see much need for associations at all in their current forms.
This comment may offend some contributers. I am classified as a Newsagent, however i am a bookstall, no deliveries after giving up the magazine program run.
Until there is one association I would not want to be a member of any faction. That is how I see them. My personal view is one for all and all for one.
Derek,
Not offensive at all.
I call my outlet a Newsagency. I have soldf off my paper run and so QN call me a sub agent. Importantly however my customers call me a Newsagency and thats where the buck stops.
As far as associations are concerned, if we have one then WE should run it. Members contribute a small fee to cover the wages of a full time staff member to replace the shop owner who is away on association business. Perhaps we could all have a go for maybe a one year term.
As for commercial activity, thats what the marketing groups are for.
Jarryd,
Quite frankly Newsagents will die in their current form ….no consensus will ever be reached to satisfy all in an association model…what will happen and is happening is the emergence of a commercial groups similar to the franchises that dominate the world today and will continue to dominate…whilst I do not like the model of Supanews, eventually that type of model will be the surviving remnant of the newsagency chain. The small non aligned store will increasingly find it difficult..Unless business owners are business minded and commercially focused they will diappear. Associations are good for sporting bodies, public charities and open forums…They are needed as information platforms, but that is all they can ever be and should be…What your business as a newsagent becomes is up to you…From our point of view we are a 250m2 store, with bookstore, dvd, stationery, confectionary, lotteries and more subsections….News is just a small part of our business model, but we benefit from the Newsagency tag and other martketing group sub shops we have within our store…We do see the appeal of brand recognition and customer perception of that…unfortuntely in today’s franchise models the only real beneficiaries are the master franchise…just ask most franchisees…in terms of more and new associations…well we have enough in state and national bodies for newsagents, let alone other retail organisation options…stop rebuilding the old wheel and build something new..be lateral in thought and strategic in direction…that is how you will prosper…..and yes we continue to prosper in our store through continually refreshing our image…a commercial body would ultimately look after all its members through shareholder value and benefit…not just advice to members and rebates to keep the head office running.
I don’t believe an association should be seen as a commercial model, as over time it will see itself to be running as a profit concern for its own purpose.
that is it will operate first as a business, good example being ANF.
Granted it need funds to run, but isn’t that purely only through members’ contributions?
The main agenda for a newsagent association is to first and foremost protect newsagents’ interest when dealing with newspaper/magazines distributors.
Isn’t that what a newsagent is all about in the first place?
The reason why we are in the situation today where we have lost market share is that we have lost negotiating power through lack of unity and self-preservation purpose in all existing newsagent associations.
The rest of the items to be sold in a newsagent are only value-added concerns based on the business owner’s outlook.
So yes, until there is only one united newsagent association then only we will consider joining…..
Derek,
Totally agree – newsagents WILL DIE in their current form.
The “commercial body” model of which you speak is essentially a merketing group or franchise owned by the members. This type of model has prospered in other independant industries and could do the same in this one … but it would still depend on the success of the model itself.
I too see the future of the industry in the hands of franchise models. How those models are structured will undoubtably define which ones prosper. The Supernews model is flawed and uninnovative so I don’t see it being the dominent force in the industry. But the standardisation that Supernews and traditional franchise models follow will need to be adopted (most likely in a diluted form) by existing marketing groups if they want to realise their full potential.
Jarryd,
Absolutely …this is where I can see independent newsagents potentially having a viable collective change of direction …into a quasi franchise type model which also gives them some ownership in the overall franchise…not just membership for advice/fees…beyond their individual shop value they would also have a new form of greater value .. the inherent value of their own business, the value of their shares in the commercial marketing come support entity, and the branding to position them in an ever brand conscious society..I too think Supanews is totally flawed and lacking in real return for ownership..it also does not provide value back to the franchisee or the opportunity to benefit in the brand development…associations are great but ultimately lack commercial unity to drive suppliers, members and customers to their brand..Marketing Groups are fantastic, but ultimately members do not benefit long term in the brand development, despite their contribution to this brand development in fees, fitout and brand marketing..they have no long term benefit by default due to a lack of ownership.They also through membership help grow the brand, which the master franchise can further leverage value from and faciliate the opening of company stores..wheras this value could be owned by the members, in the current form it is owned by the Master Franchise or Markting Group. The brand is not owned by the members, but rented whilst they pay their fees.. residual brand value only really resides with the Master Franchise or Marketing Group,…I am in a major marketing group and a state newsagency association…but I feel there can be so much more….I would invest in my future, in other like minded newsagents and a brand if it also meant shareholder value and returns from unity… gone is the local corner store and baker, but here are the bakers delight, brumbies, fooworkx, IGA, SPAR…Newsagents still have the term newsagent, but for how long as the product mix changes…brands will drive us forward as the Post office, Bookstores, Card & Gift stores all mutate to look very similar to what Newsagents do, but with brand focus..You do not go to the baker any more you go to Bakers Delight or something along those lines…generational change happens slowly, but it happens….being part of a larger thing might mean giving up some control…but ulitmately the customers have all the control, by their discretion to shop with you..Billexpress was a lost opportunity, which should have been owned by the members that made it huge, not have its members rorted by it…without the newsagents Billexpress would never have happened.
Steve, You make some big assumptions which are not accurate for all marketing franchise groups. Mark
Ah the old “assumption” addage…yes we know what it means, but Mark all comments provide food for thought and you potentially could chew on the bigger idea…opportunity presents itself every now and again…and yes marketing goups are good, but could offer more….and thank you for opportunity to express an opinion,just that…your blog forum is a great service to the industry.
Steve
Steve,
Im some cases your comments about the franchisor are correct – Supanews is certainly one. But not all franchise models are the same.
In some franchises, the franchisor is the one who benefits the most. But that doesn’t necessarily mean that the franchisee is not better off simply because they have no ownership of the franchise model itself.
There are two seperate capital investments to consider – the franchise model (which includes the brand itself) and the individual store. Both are seperate investments, each providing their own seperate ROI.
Not all franchise models work in the traditional way. That is, not all are designed to be a profit entity for the frachisor(s).
newsXpress as an example does not operate like a traditional franchise. Money comes in, money goes out and dividends are not taken by the franchisors.
In a good franchise model the members do benefit in the long term from brand development. Brand value extends to its effect on sales and the potential market value of a store. Would a Macdonalds store have the same market value if it sold exactly the same products but was not branded as Macdonalds?
On brands, the bakery example is one of the best we can use to show the newsagency industry how things can change for the better. Newsagents that don’t embrace the demand for branded stores will fade away. I not only see this as necessary but a positive for the business-savvy newsagents who will be able to capitalise on the industry’s downszing.
Helen,
In reply to your comment of July 16 I advise that the newsagent needs an association such as VANA – the association is only as strong as its representatives. I have been a newsagent for over 30 years, Director of VANA for 6 years and my family has had a relationship with the industry since 1890. I have a family heirloom – a history of the original VANA Trading Co.- it was profitable until the recession of the late 1920’s. The group structures of the 1960’s that were created by enterprising newsagents of the 1960’s were very successful until these gentleman retired in the early 1990’s. These newsagents of this era were friends, good business people and many helped different agents for whatever reason. We have lost some of that involvement over the past 10 years or so. Many good newsagents exist but a few are making it difficult for the network. May I suggest Helen that you stand for the committee at the next AGM and have some input. There are some good people working at VANA and some that need to retire. I remain a good friend to newsagents and a proud supporter of VANA
J R
Hi we live where we have a sub news that sells lotto, scratchies, etc but does not carry any magazines is this legal. We are in Queensland.
Mike
Can sub news sell lotto etc but no magazines ? In Queensland
Mike they can sell what they like.