2009 is shaping up as a defining year for newsagents. Besides the disruption caused mobile devices and the Internet and the challenges brought about by the so-called Global Economic Crisis, our channel faces considerable structural change as several key suppliers introduce changes to drive efficiencies for their businesses.
I am fortunate to have be a participant in briefings by several suppliers across different product categories in newsagencies. While I cannot share details of specific briefings, I can say that in 2009 more than ever before newsagent compliance around key business practices across multiple departments will be crucial.
While we can be frustrated that compliance is used by some as a stick, there are smart suppliers who will use it as a carrot. From what I have seen, most of the new compliance regimes in 2009 will be good for individual businesses.
Achieving compliance requires support from all stakeholders – the suppliers, your employees and the providers of any tools such as newsagency software. It is the area of software which has given me a seat at the table in various briefings over the last six weeks.
At these meetings I have robustly represented that newsagents need to gain as much as suppliers stand to gain from mutual compliance. Whether suppliers have listened remains to be seen.
2009 will be a tough year for our channel. The bar will be raised. Darwin’s Theory of Evolution Natural Selection will be evident.
Newsagents can best prepare by reviewing the efficiency of their business inside out. There is less room for wastage, mistakes and ignorance than ever before.
Mark, are you saying it will get better for newsagents that do the right thing? Can you hint at any possible changes or will we just have to wait?
not being as bright as you Mark – can you explain the theory of evolution as it relates to the newsagency channel
Mark, who else was representing the wider newsagency community in those discussions ?
Did VANA have any skin in all of this ?
Michael, In a couple of areas there will be operational savings for newsagents.
Jack, survival of the fittest. PS. I’m not that bright. I failed high school.
Bill, the briefings I have attended have not included association representatives. However, I have been told that the ANF has been briefed in one product category.
Mark
Mark, that sounds positive which must be good. I also like how someone with a level head was there representing us – Thank you.
I think it’s Darwin’s theory of natural selection you’re trying to say. I failed high school too or maybe it failed me, but I’m not that bright either.
As in Australia, so it will be in the UK.
Around 1000 news selling points disappeared last week with Woolworth going belly up.
I am already being told that we will be better rewarded by our marketing group if we adopt all the right behaviours. Although taking milk through the group supply centre is likely to be worth a good deal more.
2009 for us is about bottom line building.
Thanks for the info guys, I understood Mark’s last paragraph and compliance expectations but what really is Mark trying to say?.(no offence Mark)
Derek,
I was writing about a few things:
Next year will be tough. We need to be tough if we want to make it.
Newsagencies will not make the cut, they will close.
We need to hold our suppliers as accountable as they hold us.
I’m glad to be part of this channel.
Mark
Thankyou.
Are other software companies involved?
Simon,
Not at discussions I have been to. There may have been other sessions. Without wanting to sound arrogant, Tower has more newsagents using its software than all others combined. We have always been first with key industry compliance. These two factors separate us. Also, as newsagents ourselves, we bring a deeper perspective to these discussions.
Mark
Mark
When you wrote “Newsagencies will not make the cut, they will close”
Are you talking about Distributor compliances for example Newsagents costing Distributors money due to Geography? or Newsagents going belly up? or neither.
Derek,
I see it as a combination of both. yes there will be tougher compliance obstacles – some suppliers have complained about too many accounts.
More newsagents are in financial difficulty than ever before. Suppliers too. This will lead to shrinkage in the size of the channel.
Mark
Mark I find it strange that the Distributors should be unhappy with too many outlets .it was there own work ,could not wait to go to every where for the sale of a small amount, blew up the subagent system it was said .now it is coming home .Wonder if the will attack 7-11 and co My be it’s time they tried to save there core sellers NEWSAGENTS .ARE SUBAGENTS MAKEING A COME BACK?
You are right although I do not know really how defining it will be after reading another blog. The exerpt below shows that the industry is in trouble and through ACP debt and how it is servicing its debt. It is no different but on a smaller scale for real Newsagents who struggle to pay its monthly invoice to its distributors.
PBL Media exerpt
“Reports yesterday suggested that lead banker Goldman Sachs was becoming unhappy and that Australian banks led by NAB were unimpressed by the suggested rescue plan. Some banks didn’t like the way James Packer’s moved to distance himself by resigning from the Board and refusing to put more money into the recap deal.
A problem for PBL Media is the way the Nine Network (and increasingly ACP Magazines) are slowing repayment of supplier debt. Its late paying invoices, or not at all in some small cases and it is running 180 days (six months) behind in all but the most important cases.”