The decision by News Ltd to cut the margin paid to newsagents for the sale of its Alpha magazine by 40% demonstrates the double standards of the organisation.
In the pages of their newspapers, News Ltd paints themselves as champions of small business, yet in their boardroom they make decisions which hurt small business. There is no good news for small business newsagents in the Alpha decision by News Ltd.
Having launched and built Alpha sales to an excellent level, newsagents are to lose margin, customers and other benefits. This is an arrogant profit focused decision by News Ltd.
While there is nothing illegal in their decision about Alpha, it is my view that News Ltd has acted unethically towards newsagents, their so-called partners.
There will be more decisions like this in the coming months and years as News Ltd re-jigs their business to today’s economic and news distribution requirements.
John Hartigan, Chairman and CEO of News Ltd is on the Federal Government’s Business Advisory Group and has been regularly called on by government to serve on boards and in other capacities. I wonder how his colleagues on these boards would view him if they knew that he presided over a company which treated small business owners unfairly and, as I content, unethically.
Good work Mark,
I don’t know why Hartigan is there, must have a hide like a Rhino, If everyone starts putting Alpha at the back of the shop though it should stir him up.
Paul,
There is a better place than the back of the shop – put it straight on the back of the truck it arrives on.
NDD are obviously party to this decision and have managed to convince the morons at News that they can do a better job hence the crap about better results for all concerned. If everyone hit NDD with early returns on Alpha from day 1 there is a chance, albeit very slight, that they might see the folly in grabbing the morsels News feed them but I guess when you look at NDD’s portfolio you realise that’s what bottom-feeders do.
Given that this is a prime example of what associations should be covering on our behalf but also recognising that they are 9-5, Mon-Fri gentlemen’s clubs, I guess we will be hit with an face-saving arse-covering email from them about 10.00am tomorrow.
As a newbie I am shocked at the lack of ethics by suppliers to newsagents. The only way to stop this is to hit back. This is why I will not stock Alpha. If they keep supplying then I am prepared to close by ndd account. I just spoke to another newsagent who has done this.