Newsagents interested in the financial performance and prospects of magazine publishers will find the report in The Australian on Saturday about ACP magazines an interesting read. James Chessell offers context of the ACP business within the overall Nine operation on the backdrop of a possible decision to float the business.
Mark,I have just watched your A29 video and I commend you for being so honest with us.
It is scary to think of the changes we are enduring as an industry but following your advice and diversifying our offering I feel confident that our industry will survive. I think that a lot of dead wood needs to be culled (agencies that are dirty little holes in the wall) but the agencies that adhere to your advice will, in my opinion, prosper.
June thanks for your comments.
For years I have seen newsagents and some suppliers deny that change is coming. As the video outlines, I see it as an opportunity … if we embrace.
I just dont get this Deadwood word.
Its like saying because I drive an old 1997 Ford and one drives a 2009 RAV4 you are a better than others
These are business’s who feed families and are not prepared to mortgage their house and whatever they need too for the sake of having the best looking shop in town with all the bells and whistles.
I would be very careful when you outlay these big sums of money for alive wood Newsagencies.
Some newsagencies owe more than what the business is worth.
The Model is wrong regarding the valuing of Newsagencies, just ask most banks.
Deadwood agencies provide much needed services to communities that some people would not even contemplate trading in because lets say the demographic puts them off.
You have to be nieve not to know change is coming, its here some change slowly and some wont change.
All Newsagents are not top notch, some deadwood are clients of POS systems suppliers and sometimes I wonder where you people can be so careless with words.
There is no middle ground when you talk about change. Their are quiet a few levels of Newsagents / Retailers, they are not all business’s who have to or want to be leaders of the pack.
Embrace however I do not think the elimination of “Deadwood” will result in an influx of money in your till.
Derek, If you read what I have written at this blog about change and if you came to my Newsagency of the Future series last year you would have seen that I think there is considerable grey area on relation to change.
I am not advocating a one size fits all approach to the future nor am I saying that I have the answers. Each newsagent needs to find their own future. The problem is that too many are not looking.
We are no longer agents as was the case in the 1800s when the channel first started. Then, our future was directed by those we were agents for. Today, we have more freedom.
I do know where you’re coming from Derek. Shopfits and technology upgrades are outrageously expensive.
However a good shopfit combined with automatic ordering can lift sales and efficiency dramatically.
You just have to weigh up the cost/benefit.
To keep a clean and tidy newsagency is free and should be a no-brainer.Too many newsagencies fail this basic test
Mark- Appreciate the reply, sometimes it is hard to read what you are thinking and it is good to hear that you are not Black and White regarding change. You are right their is considerable grey areas regarding change.
I guess I am hard on you because I believe you think its my way or the highway however your response to my post in my humble opinion has encouraged me and I believe it may of encouraged other blog readers to see a deeper insight into your reply.
As Peter indicated, people who are not looking may well be constrained and are weighing up the cost / benefit of continually investing, it must be very hard not just financially.
Peter Of course I am not right in all my post but I am glad you saw something of what I am trying to say. Peter it is a no brainer however I just have a problem with the word Deadwood.
I did read the report that you have linked it was an interesting read. I would like to know what are all the reasons why profit has stagnated @ 150m. One of my reasons why it has stagnated is that some newsagents do not have enough pockets to display and merchandise properly because of the sheer amount of titles availiable and sent to Newsagents.
Derek I know that some of what I write makes me sound arrogant or holding a blinkered view on the topic of the day. Except for issues around magazine distribution and supplier fairness to newsagents, I have a more open and accepting view that a blog post may suggest.
What I do know is that change is vital to our future. The extent of change or even what the change is will differ for all of us. For example, city based shopping centre newsagents have different pressures to rural newsagents.
The keys are that we understand the need for change and that we start our own journey.
Derek, I should emphasize that while I have a fairly new and upmarket sort of a newsagency I too had to be “culled”.
My front strip shop had to be closed down when I sold my round because the customers were no longer coming into the store to pay their accounts and that led me to believe that I personally was “dead wood” and needed to cull my own newsagency.
I am not supremely confident that I have made the right choice in having a new, well equipped, good looking store in an eastern suburbs village which is quite upmarket. I can only hope (which you touched on) that the investment made in the new store will eventually pay off when we sell. However, I know that is not a fait accompli and I hope I didn’t come across as knowing everything because I don’t. I’m taking risks every day to try to ensure that I don’t go broke at this latter end of my working life and it is a constant struggle.
Having clarified that, I sincerely believe that a lot of newsagencies are dirty, dark and uninviting and I don’t resile from that.
June
Thankyou for sharing your story in summary.
Maybe I have learn’t the definition of Deadwood now in retail, my definition was quiet different. I was under the impressin it mean’t small Newsagents or retailers that are running Husband / wife teams. So having clarified that I apologise for the definition problem. I dont have a case for defending dirty, dark and uninviting Stores.
Your story is what Newsagents need to hear or read, some Newsagents are facing, the decision to re invest probably via a Mortgage and hope it will give you the return you require when you are ready to sell.
You touched on something that we do not talk enough about, the constant struggle in this industry. The only thing constant in the world at the moment is change but it is at a cost and not just financially.
I am sure there are Newsagencies that are going along well and that is fantastic however I believe there are a lot of June’s out their wondering if they can change their business via upgrading their prsentation and also cope with the arrival of change inside of the business.
I am sure you have done your homework however the risk as you say is underlying.
Your story should also encourage other Newsagents / Retailers that they are not alone, you have been open and honest on what you had to do to continue and then endure once you made a positive decision to change the future.
Again thanks for Sharing.