A newsagent colleague handed back their newspaper home delivery territory two years ago. The distribution business was turning over in excess of $500,000 a year but was losing money and detratcing from the associated retail business.
The publisher appointed a contractor to replace the newsagent. They handed the distribution business back after a year.
The publisher appointed another contractor. They have just pulled out due to the run being loss-making.
The publisher has now taken on then run for themselves. Maybe they will realise, like the three before them, that their unreasonable and socially irresponsible approach to newspaper home delivery is what is killing newspaper home delivery businesses in Australia.
Publishers cannot expect newsagents to carry an unreasonable share of the cost cutting which is driven by subscription and other deals.
It is unfair that newsagents work for below minimum wage when publishers increase advertising rates and protect their own position.
The story I have shared is playing out beyond this one location because we have a situation where publishers protect their income through advertising rates yet refuse to give small business newsagents an opportunity to achieve a fair income through newspaper home delivery charges.
This is why newsagents are handing back their runs.
viva la revolution.
Similar thing has occurred in NSW, particularly regional areas.
Nationwide News is well aware of it. Newspapers are arriving 1.5-2hours later on a daily basis. It is a result of the new later edition.
The problem is, whilst the contracts are relatively easy to get out of the Home Ditributor portion, the publisher’s choose to make it very difficult for you if you still have a retail outlet.
I know of a newsagent in my region who it took almost 12months to get supplies as a subagent because of the treatment she got from Publisher’s.
The threats, lies and intimidation the publisher’s used was disgraceful.
Having said that, she said she is so much happier now the run is gone and her retail business is thriving.
We had to stop because of OH&S issues that couldn’t be overcome due to the publishers control of both the weight of papers and the time they arrive. Our dellivery business turned over similar numbers to the one you speak of and we lost money servicing it. We are now more profitable despite having to purchase papers at retail – as the publishers are preventing us from getting supply as a sub-agency via the new contractor.Bottom line is our retail trade went up and the publishers circulation in our area has fallen dramatically – they don’t care as they get money from advertising for overinflated circulation figures based on “readership”.
@ Kyle : when you say Nationwide News is aware of distribution problems with weight and late delivery times, one wonders why the Australian allowed Nationwide News in Sydney to take control today of the distribution of the Australian which had previously come form Melb to Albury in 3 1/4 hours arrival 3.30am, and change it to Sydney to Albury arrival 8am, cancelling the possibility of Home Delivery and Subagent Delivery. UTTER UTTER contempt for their customers, let alone their “valued agents”.
Fortunately, our geography allows us to sell plenty of competitors and a local paper as well. One hopes the “logistics expert” hired to do this will be rewarded by a career improvement very soon.