Many distribution newsagents in South Australia have benefited from a long-standing 2.5% 2% settlement discount arrangement with News Ltd’s Advertiser Newspapers. With Advertiser taking home delivery account collection, newsagents stand to could lose access to this 2.5% 2% if the newsagent is no longer required to pay for the newspapers and are just paid for the distribution service. This translates into a margin cut of around close to 10% if my assumption is right.
UPDATE: (9:30pm) I updated the above paragraph following feedback from the Advertiser. I note that I have been told that the settlement discount remains. I am awaiting clarification on whether it will apply to the value of the newspapers deliivered and the account collection for which the Advertiser plans to take over. This is important as it represents real margin to the distribution newsagents.
Newsagencies are slim margin small family businesses. They cannot afford a 10% cut in margin – not in today’s marketplace, not ever.
Meanwhile, the ANF, the only body representing newsagents in South Australia, appears more concerned with control than the issues if the email sent out to newsagents this morning is anything to go by. It included…
Can I remind ALL N.A’s that ANY correspondence should be handled by the ANF CEO or media representative in every instance and ANY information given to the media without the ANF approval could harm potential negotiations between the ANF and its suppliers and partners now and in the future.
In another email they indicate that there are issues in the changes for country newsagents. I have received calls from suburban newsagents most concerned about the impact on their businesses.
The reaction from the ANF has been poor. It reflects an ignorance of the issues and a lack of commitment to genuinely serve the newsagent constituency.
The ANF must get this right. Now, today and tomorrow and not in a week or two. This issue is affecting newsagents and their families right now and I am not seeing anything in the ANF communication which demonstrates empathy or leadership.
Nothing quite like furthering your political agenda while newsagents are hurting, hey Mark?
Michael, I have no political agenda other that fair and robust representation of the interests of newsagents. I did not ask News Ltd to make these moves nor have I controlled how those who claim to lead newsagents respond.
Are you happy with how this issue has been handled?