Greg Talbot, National Manager of Newspower, the largest newsagency marketing group in Australia, wrote to Newspower members last week expressing concern at reports of claims being made to Newspower members to get them to switch to another marketing group:
The claims of being able to offer massive increases on sales and profits are not supported by fact or substantiated by documentation.
Newsagents are doing it tough enough without having to deal with this type of rubbish and our industry would do well to reject, expose and remove those who say and do anything to achieve their end. Unfortunately, there have been too many examples of this type of behaviour in our industry over the years and too often, hard-working newsagents have been left to carry the financial burden of their lies and deceit.
newsXpress, the newsagency marketing group of which I am a Director, shares Greg’s concerns. We, too, have heard of wild claims of massive profits and of offers of cash inducements to newsagents if they switch marketing groups and card companies. We have heard that the promises are not put in writing and the obligations on newsagents if they do switch are not fully explained.
newsXpress and Newspower make it easy for newsagents to switch to another group because neither requires newsagents to sign a contract binding them to the group for five years. This easy get out holds newsXpress and Newspower more accountable to their members.
A locked in contract suggests, to me, that the group does not back their claims with action and thereby needs a contract to maintain numbers.
Aggressive marketing and cash inducements can divert newsagents from asking tough questions and wanting the claims documented.
A bag of cash today will do little to add value to your business when it comes time to sell. Newsagents are better off engaging with their marketing group, adding value, increasing profit and reaping the rewards through better goodwill when it comes time to sell.
We saw this last year with a series of good sales for newsXpress members in Queensland.
Last year, I co-wrote How to Choose a Newsagency Marketing Group. The advice in this document is good for any newsagent considering joining a marketing group. It is fair and not aimed at directing newsagents to any one group. Newsagents reading this document would be well prepared for the triple punch from the marketing group targeting newsagents at the moment ad documented in the Newspower letter.
There are two marketing groups in the newsagency channel which lock newsagents in for five years: Nextra and The Lucky Charm. Five years is a long time to be bound to a group if you are not happy.
The last time I saw this heavy-handed type of marketing to newsagents, it was being undertaken by Bill Express. Two of the people involved then are involved in promoting one of the marketing groups today.
Newsagents should be suspicious of high-pressure heavy handed marketing where claims and promises are not put in writing. They should be on alert when the marketing pitch for a marketing group, or any supplier for that matter, is more about attacking the competition than pitching and documenting their offer. The lack of documentation around the Bill Express claims made it challenging for many when newsagents wanted to get out.
Click here for a copy of Greg Talbot’s letter. I have his permission to make it available through this blog.
Ultimately, newsagents have to make their own choices. There is no rush. Take your time. Shop around. Start by working out what you want from your newsagency. Talk to other newsagents and decide what is right for you and your business today and for when you decide to sell.
I can be reached on 0418 321 338 if anyone wants to discuss this or any other post.
When I was researching my entry into the newsagency industry I spoke to a lot of newsagents and suppliers. I was stunned to see that newsagents have absolutely no negotiating power to get out of such a contract, both with suppliers and some franchisors.
My advice as a successful small business person is to read the fine print, have your lawyer, even if it costs you money to do so, have a look at the contract and make you very aware of what you are signing.
I have been caught in the past in the supermarket industry by this and no matter what agreement I sign, I have my lawyer check it out.
Any contract holding you into a long term agreement without a get out clause is a red flag which must be thoroughly checked out. Usually it will be because there is access to IP and other information which is readily available by word of mouth or on line.
Before you sign on the dotted line talk to others. Do not take the word of the people you are recommended by that group to talk to, talk to others. Do your homework and save the pain down the track.
Make sure you are in control of your business, not a supplier and not a franchisor. The franchisor must be able to establish that they have been able to help your business and substantiate all the claims they make. If they cannot you need to have that written into any contract to protect yourself.
Make sure there is an easy get out clause for both parties.
The rewards of working cooperatively should be mutual, not one sided. If they are not, a party should be able disengage the other with a minimum of fuss. If the contract does not allow you to do this, do not sign it, or have a lawyer amend it to your satisfaction.
John
me and another friend have people coming offring $$ to join a group. no is my answer and THERE IS NO FREE LUNCH.
Five years is a long time to be forced to stay with a group. A mate of mine wanted to leave because he was being made to take products he didn’t want. He complained and complained and couldn’t get out of the group. Me I’m with no one, too small so I’ve no axe to grind.
Mark I am a Newspower member because it is owned by newsagents. They are good for my business. Thank you for taking your newsxpress hat off and writing about the games people are playing.
Mark
are there Directors of GNS, (owners of Newspower) members of newsXpress?
The reason I ask this is that the rumor mongering is at an all time high and this is one of them. I agree with you let’s not support bad behaviour ruin our industry.
Graeme,
I am not sure why you would ask this or why there would be need for others to gossip about this since newsXpress publishes details of all member businesses on its website.
If the organization concerned is offering and inducement to join them, there will be a hidden cost in the future.
I have had this offered to me in past and some fellow retailers in my sector swallowed the bait and get caught. It cost them tens of thousands of dollars to break the agreement and caused them, their families and staff a lot of heart ache and financial loss including good will and profit contraction.
My advice again is stay clear or get a legal opinion. If Eric and David are right in what they are saying this is deplorable behavior and the directors of the group concerned should be hauled in front of your peak retail body or associations and asked to explain.
Caveat Emptor, let the buyer beware, does not apply here if misrepresentation is taking place. If there is financial gain on the part of the person involved in the sale or provision of a contract, they are at risk of breaking the law and also implicating the business they represent.
John
Having this situation out in the open is a good thing. The industry needs to call upon VANA NANA QNF and the ANF to do something about this to protect newsagents. Whilst they may not want to fund a challenge to the contract, they have the ability to have their legal experts have a look at the contract of all groups and publicly make aware all newsagents through their newsletters, emails and publications.
Too many newsagents are being caught with their pants down on this one and now it is time for the associations to stand up and be counted and communicate the realities of these restrictive contracts.
If they do not it shows in my opinion they do not care. No matter the group they belong to at the core of the matter is they need to protect the industry and look after their own.
Associations, you need to be aware that there are scared people out there who are lost because of the threat of legal action over them.
Stand up and be counted, the only way to stop this is full disclosure of the truth and the CEOs and boards of VANA NANA QNF and ANF have the ability to do this.
Yes I have heard the gossip of a NewsXpress takeover of selected Newspower stores for some time . As for the attack on other groups, well just the cost of this blog..The bias is obvious, but there is some good information discussed here and the effort from Mark to support this site is considerable. But as you all say NO FREE lunches, whether it be commercial inducements or advice on a blog…it all comes with some strings…Just up to the individual to work it out for themselves.
Steve,
There has been no newsXpress takeover of any business. newsXpress does not do this. Newsagents are free to join the marketing group which best serves their needs.
Steve,
The rumors our out there same as the letter put out by Newspower. Mark says he doesn’t know where I am coming from when I ask does he not know etc etc. he gave me the answer and I looked up the result on http://www.newsxpress.com.au yes there are 2 directors of GNS with newsXpress outlets, Thanks Mark for your transparency I wish others had the same.
Graeme,
Rumours can’t exist if the information is in the public domain, as at the newsXpress website.
Further, my blog post has nothing to do with this. It is about people offering cash to get newsagents to switch marketing groups and not putting promises in writing.
Graham and Mark you both seem to have issues with each other but just keep peddling around them maybe it is time you both get to the point and say what you really think . Don’t get me wrong i am not knocking either of you and i enjoy reading what you both have to say
With respect Mark it was about supporting a letter from Newspower and newsXpress exposing a something that not everybody understood.
Graeme,
It was about the Newspower letter. Maybe now we can get back on topic.
Welcome to the new nextra store in Lismore that used to be a newspower newsagency. I hope the change brings all the profits that were promised.
Pardon my ignorance, but in the unlikely event someone might approach us, can somebody please name the offending group?
I have gone to newsextra ,5 years now ,a good move.
Y&G
Didn’t you read Luke’s post? The clue is in his post.
Thank you, yes.
Should refresh pages when busy..
Thanks Y&G this is the something that was not spelt out in the “joint” communication to newsagents on this blog. Could have been simply put rather than “guess who”? I guess the answer is it’s a free World and people will make up their own minds after noboby told them NOT to buy a newsgency for in most cases hundreds of thousands of dollars therefore it’s pretty much fair to expect that they can choose their own branded newsagency without being bagged by others.
This is just a statement supporting free choice with no hidden agenda.
G`day Graeme, did i miss something? i didnt think any of the previous comments had a “guess who” vibe to it.
Cheers
Al
Allan,
You’re right. Graeme is playing games for his own agenda.
My original blog post is a call for enwsagents to research thoroughly and carefully before joining a marketing group, make sure you know what you are signing up for and that the exit opportunities are aceptable to you.
Newsagents lost a ton of money on the Bill Express locked in agreements even though some at the time said beware.
Mark,
Stop aiming at me and answer the question, you sent out the message without naming the party which ends up everyone asking “who are you talking about” interprets to “guessing games” See Y G post 17.
Get on with your story and stop being personal. It’s answers people want not inuendo.
Graeme,
I am responding to your comments. You brought in rumours. Silly really.
As for naming the group in question, I’ll leave the original post to speak for me.
Mark drawing a relationship between Bill Express and groups is totally off track and not called for. Say what you really want to say. Nextra have a sales person who was right in the Bill Express mess thats the only tie in.
Groups as you well know have different policy to target different agents. Lock in agreements are formulated by groups who actually have some IP they want to protect not only for themselves but their members.
30 day agreements may give some solace but in reality once the owner has placed signage, put in uniforms and embraced the group they have spent a large sum of money anyway.
Long term agreements between group and store also gives suppliers a better indiction of what the group will be in 2 to 5 years time. 30 day groups are just that.
I wonder how many suppliers look at 30 day groups and breath a sigh of relief at the start of the next month.
Finally by how your post is constructed can we then assume that both newxpress and newspower members may loose head office supports after 30 days.
I am sure this isn’t a popular post but I personally think that there is enough room in this industry for a few different models. Scaremongering does nothing. Research the groups, make informed decisions and ask questions. There I have written ‘how to choose a marketing group part 2’
Mark,
You are virtually saying that these two parties who offer 5 year contracts are no good when every franchise in Australia offers a minimum 5 year contract. I believe that’s a combined slur coming from newsXpress and Newspower when there is no proof form their members that they are disavantaged. You know some newsagents that have left newsXpress and Newspower joined Nextra So what it’s their choice after all isn’t that freedom is that a point to make to other newsagents that they should be aware oft the only two opposing marketing groups to the ones you represent?
I don’t think so. Ithink it’s over the top and I don’t have any affiliation nor hidden agenda.
Personally I think all marketing groups leave a lot to be desired and have a long way to go before they can claim that they make individual retailers successful and I’d rather see them concentrate on making the nesagent more profitable than ‘panning’ their opposition.
The rumoours were a matter of question you answered it by stating that (inadventantly) 2 directors of GNS are newsXpress badged (when interestingly enough they are paid by newsagents a Directors fee to promote GNS and its Marketing arm Newspower) I have not previously commented on that so why are you bringing it up all the time?
My question to you is do you feel an obligation to support the Newspower line and letter because of the abovementioned conflict of interest?
Brad,
Two people currently representing nextra represented Bill Express.
My core advice is for newsagents to shop around and find the right group for them – get the promises in writing and don’t be bedazzled by a bag of cash.
As for the 5 year agreements, there are newsagents out there living with these things who discretely caution others against them.
Graeme,
You raised the status of GNS Directors in your first off topic comment on this thread.
I don’t see the conflict shadow to which you refer.
I am sure that each marketing group has evidence of the tangible financial benefits delivered to their members. I know newsXpress does.
Graeme, you seem to be very interested in 2 directors of GNS being newsXpress members, did you not say in an earlier post that when people spend sometimes hundreds of thousands of dollars that it is thier choice as to who they belong to and shouldnt be “bagged by others”. I also dont understand why Mark is being attacked for not “naming” the groups, because i have seen blogs where he is attacked for naming and not naming, hows the bloke supposed to win either way?
Cheers
Al
I was in newsexpress, now in newsextra,more money to be made in newsextra.With a 5 year deal i now where i am going after ivesting in new signs.Realy happy with nextra
The original post and letter from newspower was to advise newsagents that were looking to swap to get all promises in writing before making a business decision that locks you in for 5 yrs. If you have done this then great, move forward and be profitable.
The problem lies in making decisions based on verbal promises that may or may not happen. It wasn’t one or two groups ganging up on another it was simply giving newsagents warnings.
From my point of view I would not trust anyone that went from selling bill express to selling a marketing group and making verbal promises but thats just me, as I still get nasty letters asking me to pay up bill express money because I have a “contract”. Good luck getting anything from me.
Thankfully, my partner pulled us back from making a decision to join nextra which with hindsight we would have regretted. They were not right for us. But they pressured me to sign up to get the deals being offered. There was an urgency but the benefits sounded wonderful.
As I said my partner pulled us back. There was nothing in writing, not the important stuff at least.
As someone else wrote here, there is NO FREE LUNCH. We newsagents more than most others should know that it is our hard work which makes our success. Someone telling us that they will make us rich and that we don’t have to do much is probably not being honest.
We made a decision to stay independent for the next six months and to evaluate the groups carefully. We will decide on our own terms and from what I read of the document Mark published it’s what he suggests. But for another day or two I would not have had the luxury of the time to shop around. I think this is what Mark is talking about.
Here Here, Luke and David!!!!
D R , It’s a pity you didn’t stay with newsXpress long enough to learn how to spell it.
Graeme,
Franchises that offer 5yr contracts usually have very strict, proven models. No newsagency group has such a format.
One of the problems with locking newsagents into a 5 year contract is that even if they do leave, they can’t join another marketing group for x amount of time. Some landlords won’t let the business trade without a brand, so the newsagent is left without any other option but to stay with the group that they are unhappy with.
Shayne,
Maybe Mark should spellcheck his own Blogs – I have seen Mark mis-spell NewsXpress on his own BLOGS and he is a newsXpress Director – as he so often points out.
Just a point – we all make mistakes…
Hi Shayne. Can not spell , but i can count the newsextra cash i am makeing
What’s the percentage of increase D R?
Having the ability to make choices is why most of us have entered into newsagencies. It is truely the last bastion of retail where you can re-invent yourself and move forward.
Our issue isn’t dodgey reps, its bigger. Propaganda and allowing false calims to go unchecked that is the issue. If someone is offering you a large cash amount and growth of unusal proportion get it in writing. If they have a model that you like but some things you would like to add or substract then discuss this.
Letters such as these are a great marketing ploy to gain credibility and trust with the writer. I take my hat of to Mr Talbot he has to deal with dinosaurs who had the market and did nothing with it. Didn’t change, didn’t think they needed to provide support, didn’t think that they needed some type of standards, and so on.
Our competitors have become more professional and with this suppliers have more trust. I am a little with Graham here I am wary of Mark’s intentions. Forget this ‘letting the people know’ business. The nextra ploy of promise and lack of written proof is a claim nearly every newsagent can make about most suppliers.
Jarryd you should really research your comments further about what works and doesn’t. Some stores within every group excell and others are a little slow. I know of some stores within my group that have smashed all sales records by following the core principals of the group. They were done by hard work and constant re-enforcement of the model.
I think that the continual character assassination of the now Nextra employees simply because they were involved in following their previous employers instructions to promote and sell BXP to our industry is grossly unfair and smacks of desperate measures by desperate people. We were all unwittingly caught up in the BXP fiasco and have all learnt valuable lessons as a result.
Would you hold the retailer of a mobile phone in the same light if in years to come it is shown that mobile phones do in fact cause brain tumours when the retailer of the phone has nothing to do with the design or implementation of the technology and is selling the handset relying on information from other bodies and authorities saying it is safe? We can only act on what we know today, not what may or may not happen tomorrow.
I know of members of newsXpress, Nextra and Newspower who are unhappy and are going to or have left, just as I know of others who very happy and want to stay in their group. Its horses for courses and different groups will suit different newsagents. I joined Nextra and happily signed for 5 years as I did not want to be dictated to as to what product range I had to carry – nXp insisted on 75% Hallmark – not negotiable, and this did not suit what I wanted for my business and so ruled them out as a group to which I could belong.
Since joining Nextra I have enjoyed a 9% increase in my GP margin exc lotteries product, so for me it was a worthwhile exercise and one which I would do again, but everyone needs to do their own evaluation and we should be free to join whoever we choose without being subjected to ridicule by our peers simply because one of us cannot spell.
We will reap what we sow, so if you have joined a group and actively participate and drive your business each and every day around the business model you were happy to sign up to then you will greatly improve your chances of seeing the rewards. If you sit back and wait for the group, any group, to deliver it on a silver platter you will have a long wait.
My belief is that all newsagencies, regardless of size, need to belong to a group for long term prosperity. There are so many options out there that there is a model to suit almost everyone, and regardless of what model is chosen, we are all part of the same industry and need to conduct ourselves as such and learn from each other to take our industry into the future – whatever that is. We have far bigger issues to deal with rather than bickering over who belongs to which group and why.
Glen that was well said . I am not with any of the groups YET it has been something that i have been thinking about for a while now and will probally do for a while yet ,
Glen, well said!!! I think you have summed it up perfectly by saying that there is a model to suit everybody. I am a little dissapointed in Brad`s comments that he is wary of Marks comments as all Mark has done is say be cautious of anyones claims if they cant back it up in writing…regardless of the group, and besides that why should a good group have to offer a cash incentive anyway? Brad also says he is a little with Graeme on this but Graeme seems to be AWOL today!!!! I think at the end of the day (good or bad) we as newsagents learn more from having a blog like this one than we do from any of our associations and that can only benefit one group…..the group of newsagents that read this!!
Cheers
Al
Glen,
You’ve said it plainly, succintly and better than I could ever express thank you for that. Brad I understand that we need to develop with freedom of choice and information to be transparent. Mark is being cute He knows what I mean and what I’ve said. yet pretends that he and nesXpress are not an influence in his indepedent thinking.
An issue that happened to me is thatI was asked if could I give some advice as to which marketing Group should a newcomer join-given that I am meeting newcomers to this industry monthly at our seminars and am promoting marketing arms as a strenght as well my 40 years experience it is not an unfair question.
I say, take over what you buy or if you take on a newsagency that does not belong to a brand wait for a few months-find your feet then check with others an assess what benefits they get from the brand they are with. I then say that ALL brands are independent and have there own criteria. I then go on at our seminars to say that GNS is OURS -YOURS YOU OWN IT! it is a foundation stone of our industry-a positive for our future!
Last week a newcomer challenged my credibilty by saying “Mr. Gramee you say GNS is owned by newsagents and support me for I have shares- yes I say, and then you say marketing arms look after members and I say Yes- then I find GNS Directors belong to another marketing arm newsXpress how this be with my company GNS.
I say cannot be,it could not happen Directors of Group are paid very well to look after members and Groups marketing arm – no you must be mistaken. So after persistence I challenge Mark on this site -after he co endorses an attack on another (2 other) marketing arms as to whether this could be true. Read his evasive answers, yes Mark did know exactlty what I am talking about I am trying desperately to recover my credibility in having faith with this situation to my answer with this newcomer.
Mark there is nothing wrong with you accepting GNS Directors as newsXpress members however not fronting the question and delivering a “well we always are transparent and publish on this site etc’ is an avoidance of the question.
Good luck to you for your Marketing Arm has a coup at the expense of GNS and GNS has an embarassment in that 2 (substantially paid) Directors are supporting newsXpress.
I merely ask .Is this why you backed the letter sent out from Newspower?
You speak of this blog as being open and not a tool for your special interests I wish to believe that howver at the moment I am embarrassed and shattered by what has happened and my foolishness in thinking this industry from a newsagents point o view is transparent.
Brad,
My comments had nothing to do with what works and what doesn’t. As you say, every group will have stores that excell and stores that lag behind. No existing newsagency group has a full franchise concept in the same way that other industries do (our industry is different so such a format would be difficult anyway). There are no ‘flat-pack’ newsagency franchises where one signs up and essentially has their entire business model handed to them.
Graeme,
You seem to be under the impression that aligning their stores with newsXpress means that these two directors no longer support GNS. newsXpress supports GNS so im not sure where your idea of a coup has come from.
My understanding is that Newspower is a non profit operation – i.e. all the money that comes into Newspower is returned in various forms to members. It is not a profit making arm of GNS.
If those directors can further grow their businesses with newsXpress then it stands to reason that GNS would actually benefit from this.
JARRYD THAT’S JUST JUSTIFICATION FOR YOUR THINKING IT HAS NOTHING TO DO WITH THE ETHICS THAT I’M TALKING ABOUT. IT’S B.S. BIG TIME.MEMBERS OF GNS EXPECT MORE AND HAVE REASON TO EXPECT MORE. TAKE YOUR SPIN TO THE ACB THEY NEED IT!
Glenn, My issue with Rob Hunt and Trish Hunt around Bill Express is to do with how they conducted themselves at the time. They controlled how they represented Bill Express. That said, it is up to others to form their own views.
Graeme, No, I don’t know what you mean. You are jumping at shadows again. You do this because of your history in the channel and the agendas they drive. You are playing a game by trying to bring GNS, GNS Directors and newsXpress into this topic as you have. The affiliations of newsXpress members is not at issue here nor is it of concern when one is looking at working with their newsagency. You are trying to discredit everyone involved: newsXpress, GNS, the two Directors. You certainly have an agenda.
Everyone, Go back to the original post. The essence of it is do your homework when considering a newsagcy marketing group. Know what you want and research the options carefully. It seems that just about everyone here agrees with that advice.
Where are the associations on this.
They have been too silent.
Get Hank Speir involved to look at all the groups contracts and publish his comments.
All associations have the ability to reach many newsagents through newsletters, email and publications.
Graeme,
No spin here. You seem to be creating an issue where there is none. The two directors are still supporting the company whose board they sit on.
Jarryd, Your comment was that ‘no franchise model works for newsagencies’. There are a number of fast food models each occupies a different niche and some compete within the same channel. Not all McDonalds work, I have seen cases where 2 failed. Based on this it is a smaller fail ratio but to make a call on all models is too broad a comment.
Al- my comment on being wary is still true. Mark moniters this blog and maintains it and for that I am thankful no-one else seems to get it yet that we need open debate. I don’t however feel that endorsement of brand or product in a public domain should go without debate. I would expect to see newsxpress promotion and advertising on their blog site. By simply the name and the variety of people posting blogs its our blog. If it is posted then it is fair game.
Brad,
you are spot on about open debate, thats why we love this blog site although i still dont believe Mark had any hidden agendas on this matter he was just raising awareness to the issue. I certainly do not see where their was an endoresement to any brand or product in what he was saying. I think sometimes people dont see what the original posts are about and sometimes would rather read sinister agendas into the same. I also agree that if its posted it is fair game as long as we dont lose sight of the original message.
Cheers
Al
Glen I don’t know what you mean about newsXpress insisting on Hallmark. When I talked to nextra they insisted that I switch to John Sands. They also said that I had to take product they would send to me without me having a say. I purchased my newsagency to run the business my way and not to be dictated to. Nextra wanted more control that I was prepared to give up. I am independent and my sales are up 9% too. The trouble with saying that sales are up is that it is meaningless without proper assessment of the evidence.
My point is you and everyone else commenting can point fingers all you like. The reality is, as has been said already, that newsagents need to do what they consider to be right for their business before signing any contract, especially the longer contracts.
just dont get all the conspiracy theories that appear on this blog whenever anybody makes a point. The original comment was pretty clear, just be careful when somebody promises something that appears too good to be true, because its probably a shonky. Most of the other comments about secret agendas is basically a waste of time. Take it on face value and get over it.
At the end of the day its our business and livelyhood at stake, so it makes sense to heed some advice, and do your homework.
Brad,
My comment was not that no franchise model works for newsagncies. It was that there is no traditional franchise model available to newsagents (except maybe supanews). The groups available to newsagents do not operate on the same strict models that most franchises do.
Terry,
To clarify re newsXpress and Hallmark, Graham Randall told me at a newsXpress roadshow he, Mark Fletcher and Mark Nagi did in Perth that it was a requirement of newsXpress membership that I had to have 75% of my card and wrap supplied by Hallmark and without agreeing to that I could not join – sorry if my previous post was unclear. Nextra had no such requirement and in fact we traded for the first 2 years of our Nextra membership with no John Sands product whatsoever. Nextra provides me access to a vast array of product – far more than I could ever hope to deal with – however I am under no obligation to take on any of it is I so choose.
Nextra has neither asked for nor received any control over my business in the 3+ years I have been a member. The only thing I get that I don’t specifically request is marketing materials to use in store, such as posters etc. I wholeheartedly agree with you in terms of how you want to operate your business. No one will dictate to me what product I have to carry. My newsagency runs my way with the support of a national group. That’s why I joined Nextra.
Re the 9%, re-read my post. I did not say my sales were up 9%, I said my GP had increased by 9% – the 2 are very different. To achieve the same $ increase without an improved margin would have required an increase of 26% in sales. This happened by accessing “non-traditional” products with healthy margins and by getting better trading terms than I could achieve as an independent. If you read and understood what I said in my original post there is more than sufficient information to make a proper assessment.
Re pointing fingers, again you have disappeared over the horizon on an emotional tangent. I did not point fingers at any one or any group; on the contrary. I do not advocate one group over another, and I said that each group has its place in the market to cater to the differing requirements of newsagents. I also said that we need to act not as separate groups, but as one industry irrespective of the group we are members of.
Terry,
Well said and I hope it will be taken on board.
I’d be very wary of signing a contract for five years. I don’t see any need for it.
i don’t need to join any group and pay $500 /mth to increase my sales.If so, i would rather every month spend the month of $500 on the customers as lucky draw or gifts.
ERIC,
That statement is incredibly short sighted and has no logic behind it. Good luck increasing sales with $500 worth of giveaways each month.
$500 to the 5000th, 10,000th (etc) customer sale of the month would increase sales.
Jarryd, Eric is obviously not saying he is planning on giving away $500 in prizes every month. He simply made the point that he felt $500 would be better spent in his shop elsewhere.
Perhaps you should have actually read his post before decrying him as illogical and “short sighted”.
Not everybody is a newsXpress disciple.
Michael,
A $500 giveaway would quickly loose its appeal if it was done every month. Consumers get bored very easily.
And I am almost certain it would not increase sales enough to cover the cost of the giveaway.
Marketing groups run countless promotions every year that don’t cost stores anything to run. NewsXpress recently run a promotion for a Toyota Yarris and it cost stores nothing to participate. It is highly unlikely that an independant store could run such a promotion.
pcarmody,
Im not promoting newsXpress. Being part of any marketing group (even a low cost group) would be beneficial for the majority of newsagents.
$500 a month provides a far better ROI when it is invested in a group that can leverage economies of scale.
I posted Greg Talbot’s letter here because it made points which I felt were relevant to newsagents. While some comments here have swerved off topic and others have sought to use the thread to settle scores, the core position put by Greg remains.
This is not about discipleship, it is about building healthier newsagencies for ourselves and for the channel. It’s about business people.
Jarryd, sorry for late reply I have been plotting the new way to make a dollar in this industry. TLC has a similar structure to that of Supa news to a point. I must add that there is very real differences but TLC has strict franchise proceedures etc in place. With most things a group is only as strong as the weakest store. So with that there is still some way to go. However investigate these options before broadcasting what works and doesn’t. I have been on both sides of the fence and can tell you not everyone has it right but some have more of a chance of getting it right than others.
Mark, I agree that there is some score settling on some points. It just shows again that National/state forums are needed. I would suggest that each person that has contributed here is passionate about their store.
Groups I guess are a hot topic because it is one of the few decisions you can make about your store and its direction in the marketplace. Bagging people’s decision to join one or the other also insights a little rage. Original post may have been about being wary but the 60 or so threads suggest something is coming to a head.
I think business is kind of like raising kids. Despite the fact they may come from the same gene pool (same as newsagencies are fundamentally newsagencies) Each child is different, they have different needs, may need to be disciplined differently, have different dietry requirements. My two children couldn’t be more different, I have one who is easy going and the other who is like a bull in a china store, both I am sure will do well in their choosen fields however both will take different paths to get there.
It is the same with our newsagencies. I have one store that has been there over 30 years, this is in contrast to our store that has been open only 12 months. Both stores have the same basic needs – newspapers, magazines, gifts, lotto, scratch-it’s – and yet both differ in the products we have on the shelf. Of course there is some cross over but the needs of each store is different and what works for one does not necessarily work for the other.
Yes, we are ALL passionate about our stores. And with passion sometimes comes over enthusiasm and in some cases bias that “our formula works”. Whether that formula be a group, a franchise or an independent. The debate suggests that you are all passionate about your businesses. But what works in High Street CBD Melbourne is not necessarily going to work in downtown Dolby. Sure share your idea, I love to hear about what is working here or there. But do not resort to name calling and put downs otherwise the similarity to children is all too much.
Jarryd, It’s is just an idea, that in the right situation can work.
Does anyone know how much cash is being bandied around with the switching/joining up?
Newsagents should be careful and check before they sign. Margin is one thing. Selling the stock is another. You need good marketing to do this. My nextra friend has been left with stock from a recent deal and no help in moving this.
I don’t know how it works as i am not in a group but surely you can make your own decisions on what or how much to stock or even how to get rid of extra stock
I am one of those agents who have been approached by nextra and I havnt been over promised anything and/or offered a cash incetive to simply join the group. They basically came layed their cards on the table told me what they could offer and to be honest I am interested in possibly exploring the option a little further. My reason for posting is to find out how the current or past nextra members out there feel about the group .. any feedback would be helpful
Laurie is not my real name for reasons which will become obvious.
I wanted to leave nextra because their model was not working for me. I was being forced to take product I didn’t want and I was not making what I was lead to believe I would make. I was also unsure about the reabtes I was getting compared to what I thought I should get for my business.
After talking for quite a while and not making progress in good faith I advised nextra that I wanted to leave. The response was a legal stoush which resulted in me staying with the group – unhappily.
Do your homework as they will enforce the contract.
As a new visitor to newspower I’m shocked at the standard of the website. If that reflects your marketing acumen, heaven help members.