Through my involvment with newsXpress I am hearing of more newsagency for sale opportunities through landlords looking to get national brand representation in their centres. Right now, I am aware of newsagency locations available in Queensland, New South Wales and Victoria. Some are greenfield locations and others are existing centres. I’d be happy to point interested parties to the landlords involved. I can be reached on 0418 321 338.
Existing newsagents, sounds like to me it is all about greedy landlords playing one against the other,do you think you are being used here Mark to get higher rents . The two sites offered around in QLD that i know are in deep trouble ,one supernews would not touch .What is this doing to your goodwill,and why would pay goodwill if their sites about for free
D R,
To the contrary landlords offer better rents to well structured Marketing Groups and Franchises as these groups drive better traffic into their centres. I have personal experience of this happening.
If someone purchases one of these locations and they get a better rent deal they end up with a greater net profit therefore more goodwill as it is a multiple of net profit.
Sites are never free there are huge costs in setting up a business that complies with what the landlord requirements to offer these sites and goodwill is only built over time so you have to be in it for the long haul. You only get good goodwill with established businesses.
Because Supanews don’t take a site does not mean that the site is not profitable. The Supanews model is based on a franchise fee as a percentage of turnover. A newsagent operating as part of another group would not have this cost of business. You can get as much buying power with a group without paying a percentage of turnover.
what would be a fair dollar amount that you all receive on a regular basis in rebate payments from the major card companies for displaying their products?
1,000,000 would be fair.
anon, a fair rebate would be based on sales. This is how the companies structure it today.
I can only assume you don’t belong to a Newsagency Marketing group, as the dollar amount varies from store to store, group to group and is governed by volume of sales not around display. All contracts are between the Newsagent and their particular card supplier and remain confidential. In saying this it is common knowledge that belonging to Marketing groups you can gain significant rebates, these will vary depending on the group you are with, and in all cases the rebate structure should be transparent to the Newsagent. If you are an independent Newsagent just ask your Card supplier for the thresholds that apply to the rebate you should be on.
I am a bit lost here but what is all this rebate stuff about ???