Newsagents still talk of territories and complain when a newsagent or other small retail business offering similar product moves too close to their business.
We ought to embrace competition for it is out of robust competition that fight harder and smarter for our own businesses.
Another business will not stop competing just because a newsagent asks – they are likely to fight harder to prove the competition point.
There is no better illustration of the benefits of competition than
The image on the left is of a flyer a group of the traders have produced. They are happy to be listed next to each other even though they compete. Visit the businesses at lunchtime and you soon see that while they all offer food, each has a different take. Such are the benefits of competition.
The mindset of these traders is the mindset we newsagents need when it comes to small business competitors. I am not talking here about the majors like Government Owned Australia Post outlets getting into our categories – that is a whole different issue.
If an independent stationery outlet opens near us, we need to respond in our own in-store offer. Likewise a card outlet. I have done this to myself at Forest Hill with our Sophie Randall card shop in the same centre as a newsagency I own. Both have had a very good year. Despite the competition, the newsagency has experienced excellent growth in card sales.
If you find yourself near Brighton in Melbourne around lunchtime, check out Martin Street and see the value of robust competition. The food and the coffee is worth the visit – in several of the stores.
If newsagents are still under the illusion that they “own” territories try and tell the publishers you no longer wish to deliver papers but still wish to be a retail only newsagent or ask them not to direct supply a large subagent because they are in “your territory and see the response you get . The publishers own the territories and we are only delivery agents, the contracts are all one sided towards the publisher. They do as they please and if that is not in our interest who cares. We need to build our future business on the back of retail sales only and view delivery revenue as short term.
While on the subject of territories,
Just a question to anyone that knows,
If you buy a newsagency with deliveries and choose to throw the deliveries in and focus on retail sales only,and become a subagent with the papers,are you guaranteed to become a subagent and get papers,or can the companies decide not to let you be a subagent either,and stop your supply and not let you sell papers altogether?And if you do throw the run side in and have no territory do any other newsagent suppliers care eg mag dist ect. or is it just paper companies?
Dean, be prepared for a battle with the paper companies if you want to simply give up deliveries, they will threaten all sorts of hell, because they don’t want their subscribers to miss out so they will want you to find an alternative . They don’t care about you but will want a new delivery person before they let you go. They will want 6 months notice and will try and bully you into finding alternate delivery means, it is their job to find another way of delivery not yours.
We found the mag companies did not care and still direct supply us at full commission but the paper companies forced us to be a subagent to another newsagent at 1/2 rates, so make sure you are on good terms with the supplying newsagent to ensure good supply and take into account the reduced commissions.
Once the initial headache is over you will not know yourself and your business. It was the best move we ever did.
Luke
Luke,thanks for your help,hope you dont mind me asking did you sell your area or just give it away?And can the paper companies stop you from even being a subagent?And do you get supply off the newsagent you gave your area to? thanks again!
Dean,
We sold our run for a nominal price to another newsagent and became his subagent because we wanted out without the 6 month termination. The paper company will not stop you becoming a subagent because they still make money from you without the delivery cost, and the new newsagent will love you because for every paper you sell they get 1/2 the commission. Yes we get supply from the newsagent that does our delivery area now and because we gave sold it to him for a low fee he does what he can to keep us happy, in saying that he has decided to be more delivery focused with a small retail shop, that is where his money is and we are the opposite. As long as you are a good subagent to the newsagent they will be rapt to have a new huge subagent.
Dean,
and don’t forget you keep your magazine run if you have one.
Brett,what do you mean you keep on servicing your subagents for magazines only,even though you give your newspaper area to another agent?doesnt the agent who buy your area get the lot mags and papers?thanks for everyones help
And luke thanks for your input and help
Dean,
Yes, you are giving up the paper run, nothing to do with magazines. The new delivery agent will probably want the mags but think about the money involved in the magazines and the work. It takes me just an hour in the morning and its all done.
Dean,
Brett is right, mags and papers are separate, if you want out all together from deliveries you can stay retail only for mags but if you still want to service your subbies for mags you can do that completely separate from newspapers. The incoming newsagent will not be impressed but you can do it.
Each territory contract is per publisher, and though they generally follow the same borders they can be owned by seperate people.
I nregards to becoming a sub-agent for papers and getting refused supply by the direct agent for that territory, that is grounds from getting supply from another agent. The contract is a ‘first rights’ deal generally.
Dean
It sounds as though we are in the same sitaution as you, a delivery round that is costing us dearly for every paper we throw.
I wonder how many N/As are in this position ie: bullied by the suppliers into continuing with what is basically bad business. I suspect there are many, especially in country areas. The threat of no supply at all is enough to keep us going at this stage.
The question is what to do about it. None of us are in a strong position to fight the publishers to get a fair deal. I would have hoped that the various N/As associations might take this up, but can’t see much evidence of theis happening.
Competition helps drive people to rethink the way they tackle business! competition will keep businesses from slacking, it will mean competitivity drives more business and enthusiasm.