I have been asked by a newsagent to look into their situation with a marketing group which they want to leave. Their reasons for wanting to leave are not central to this blog post except to note that in my view they are legitimate.
Like many newsagents signing for something which sounds like a money spinner (remember Bill Express?), they signed the marketing group contract without reading the detail. It turns out that they have a five year contract and a further year during which they cannot be part of any group.
This store is in a shopping centre which requires them to be part of a marketing group. So, they cannot leave as they aree required to be part of a national group. The only way out of the marketing group is for them to sell their business.
I have suggested that the newsagent take the matter up with an appropriate department in their state as well as with the ACCC. I suggested the ACCC as the contract is not fair in its handling of this situation.
They have apparently been told by the marketing group that they can leave is they buy their way out by paying the marketing group tens of thousands of dollars. I suspect this is the amount of money the marketing group would have made off the newsagent.
Even if they stay with the group under sufferance thinking their time is up at the end of 5 years and they can then move on, it still all falls to pieces because of the one year of being required to bot belong to a Marketing group, they then find they cannot debrand or leave the group as some landlords will not allow a non branded Newsagent in their centre especially for 1 year. This is a year of no marketing and no branding – I’d expect sales to be lost as a result.
Plenty of newsagents are happy with the marketing group in question. My concern is what happens if someone is unhappy. Why the need to lock them in? It is not as if this group is investing any money in the business. Bill Express locked newsagents in and look at what that cost the channel.
Newsagents looking at any marketing group need to read the contract carefully. Do not believe the sales pitch, believe only what is in writing as it is this which will dictate the terms of divorce should it come to that.
The friends I am helping will know in a couple of weeks whether their latest efforts at divorce will work.
Disclosure: I am a shareholder in and a Director of newsXpress, the newsagency marketing group serving 175 proactive newsagents around the country.
We all know which marketing group this is and I have been approached several times. I tell them to go away and they keep coming back. The latest is they will delete the clause for the 5 year contract. I am independent and have the market to myself, however if your group is good enough there should be easy get out clauses or no clauses at all If your product is good enough it will sell itself. Best of luck to the newsagent involved I hope you get out of it.
The associations should help here. Don’t worry about spending $400K on the futures project or whatever state body he/she is under, help a newsagent in need and who obviously got sold a dud product and wants out, but due to a binding contract can’t be in control of their business. QNF, VANA, WANA, ANF where are you on this? Don’t just rely on the funds they give you for advertising in your magazines or associated suppliers who do the same. You are chartered to help the newsagent. I have heard many times of a lack of support for their members trying to get out of this group. Where are you and where is the help!!!!!
Maybe if we all pulled out of the associations, this would teach them. At least one person here is trying to help. I would put in $1000 to start a legal fund to fight this. Any one else in?
My name is not Sam, but I am in WA and a persistent bunch of people keep emailing me and ringing me telling me that I can get the best greeting card deal and to join their ink group. I am sick of it, I do not want a 5 year contract nor the greeting card company they are pushing. Leave me alone, or i am going to name the people involved and take legal action.
NAME AND SHAME