I like the coffee from Cibo Espresso. I don’t like the deal they have reportedly done with News Limited which, if what I am told is true, will see News Limited daily newspapers available free from Cibo Espresso outlets.
This deal of free newspapers will apparently run for three weeks starting Monday.
In one instance of which I am aware, a Cibo Espresso outlet has cancelled their order for five newspapers sourced from the nearby retail newsagency to take one hundred free newspapers supplied through the distribution newsagent. The newsagent in the shopping centre loses a customer. And while the distribution newsagent wins a customer, at what cost and for what margin?
Every time a newspaper publisher gives away a free newspaper they devalue their product in the hands of the consumer. They also devalue the newspaper distribution and retail networks established to support their product.
I have seen how free unused newspapers thrown away at a third party location. I have my doubts about how ‘sales’ are counted. Are these audited sales?
Advertisers are sold advertising space on the basis that the paid for newspaper is a premium product, readers commit to the product by purchasing it. Well, thanks to deals like this one at the Cibo outlet, more and more readers are not paying for their newspapers, making it less of a premium product. Maybe this means they treat it differently … read it less.
I understand the need for publishers to experiment with deals to support circulation. I am frustrated that they focus on these giveaways while ignoring engaging with retail newsagents on building paid for sales.
The retail newsagent network is an excellent front line for driving sales yet outside of promotions like the recent Harry Potter campaign, they do not engage, certainly not in a smart, fair and business like way.
The next time a News Limited editor thinks about having a crack about the lack of support for small business from government, they ought to take a look at their support, or lack thereof, of small business newsagents.
Was at Cibo Marion yesterday. Problem with the give away is they’re clogging up their own tables with readers. They don’t keep buying, they’ve got a free paper & they make sure they read the whole thing. Not the best strategy when trying to turn over tables efficiently.
How does this add value to their advertising proposition ? Does the CAB count or not count give away newspapers ? If they don’t have a credible advertising effectiveness claim then their brand is in serious doggy doo.
Ricky, as I understand it, they can structure these deals as sales, sales numbers help drive advertising rates.
The newsagent in the centre potentially loses 100+ customers…devestating for foot traffick and shows the News Limited has absolutely no loyalty for what is its main distribution method. They are a disgrace!!!!
I am a newsagent affected by the Cibo “deal” and it makes me wonder why
we as newsagents still take the daily paper. Now that I no longer have a distribution round I only make 12.5% and
my papers have reduced exponentially to have me wondering if I should cancel them altogether and just be a card, gift and magazine and stationery shop. Less work and give the paper area to items that are more profitable. Readers of papers can then go to Coles, or Cibo and get their papers or get them home delivered. I wonder what News Ltd would think if all retail newsagents decided to do this????
Possibly they wouldn’t be too pleased but the duopoly would be quite happy I guess.
Wonder if EVERYONE shops at Coles/Woolies???? MAYBE NOT!!!
No, they also ‘shop’ at airports and fast food outlets.
One of our customers rubs our noses in it daily, while buying titles that aren’t free at the airport. At least he does that, I suppose, but I do wish he could, just once, refrain from telling us that he’ll go to the airport for the other one.