News Limited kicked off a project a couple of years ago around the future of newspaper sales and distribution. They presented newsagents with three options: do nothing, consolidate or specialise. News Limited senior management made it clear that do nothing was NOT an option.
Yesterday, News Limited told newsagents that it was going to do nothing. The promised new newspaper distribution contracts are not coming.
Newsagents have been stressed through the process since the knowledge of a decision by News about such a key part of their business made newsagencies difficult to sell and difficult to access funds for. Any bank manger will confirm this.
I would go further and note that the earlier decision by News Limited to force changes around newspapers has been a key factor in the considerable decline in the sale of newsagencies over the last two years.
Newsagents were dealt a blow yesterday when the company advised that it is not ready to provide newsagents with the contractual certainty which it had said it would provide. News Limited has opted to do nothing … leaving newsagents with a longer period of uncertainty. Promised new contracts are not coming. News is not saying how long for … things could not be more uncertain.
the VANA blog has more details on the meeting with News Limited yesterday.
This inaction by News Limited means that finance will be harder to obtain for newsagency businesses, newsagencies, especially those with a distribution component, will be harder to sell and capital investment in the distribution side more challenging to complete.
News limited created the uncertainty and the cost to newsagents by launching their review. They are continuing it by their inaction. This is not socially responsible nor is it ethical.
Newsagents have very right to be angry.
On the one hand, they want ad revenue but on the other, they want to kill off their newsagent partners who do all of the hard work for them for little or no money.
Tyipcal of the contempt News ltd has for newsagents.
Many people spent days of their time in the belief that News Ltd wanted their input. After all News Ltd said ‘they did not know how to fix it’ and wanted newsagents to provide feedback.
Well, try this feedback
Get your head out of the sand, increase the price of the daily paper, give newsagents a fair fee for delivery, and finally, treat newsagents as partners not vermin.
I’m not a newsagent – but what I do know is that the service I get from mine when it comes to home delivery is abysmal. Wrong papers delivered, no papers delivered, thrown in to the hedge, on the roof, under the car, in the middle of the road. Some of them need to get their act together if they really think newspapers are such a valuable part of their business.
Geoff the vast majority of home delivery customer experiences are positive … many hundreds of thousands of papers delivered rain, hail or shine. And done for cents a day.
Geoff, if newsagents get a fair pay, if newspapers arrive on time everyday, newspaper home delivery should be more accurate.
just love it ….. on the roof…….REALLY…. did not know The Hulk was a newagent.
Geoff are you number 21 on the right hand side I am sure I must deliver to you but I am not to sure because it is often dark , raining windy or any number of reasons why the driver cannot hit the bulls eye that you want them to . Here is an idea get off your lazy so and so and drive in or walk and buy your paper I am sure you would not be missed .
Had a customer winge today because he no longer wants it wrapped in plastic geeees hard to please these home delivery customers
Geoff – your statement is ridiculous. Everyday, come rain hail or shine we deliver 2300 papers (more on weekends) to 1492 house holds. Any customer who believes that they didn’t get their paper can call us before 10 am and get another delivery without any questions. Guess what: we rarely have to re-deliver more than 6 papers in a day. Often we find the paper at the property and it simply hasn’t been looked for properly. On average we are 99.74% perfect in our delivery. There are many businesses that would love to have that level of quality achievement. Geoff, you should check some facts before you blast off about newsagents.
Geoff, why don’t you climb up on your roof, get your paper, shove it in the hole where the sun dont shine, and ride it downtown and buy your paper somewhere else, newsagents dont need or want you. Your newsagent most likely does a bad job of your on purpose because you are such a half wit.
Geoff,
Think about newagent getting up at 4am and start wrapping paper, do the delivery whether it’s raining or shine, sometimes the paper is late, and the driver needs to risk their life to deliver the paper in the heavy traffic. Me myself suffered a traffic accident and shock during the delivery task. And all the things we done, we only earn a few cents per delivery. Please think about the other side of the story before you speak.
The VANA blog, for which comments are already closed, refers to CircOne. Does any body out there know what that is.
The VANA blog suggests that News are concerned about retail sales. Content stimulates retail sales more than anything else. What is being done about improving the editorial offer to make it more attractive to a broader base of potential readers; especially younger, gender and ethnic diverse consumers. Currently News Limited editorial is perceived as being too focussed on the middle age to older WASP mentality.
I think we all have at least one Geoff style customer. they forget about the effort that goes into getting the paper to their property, they dont know it is a loss making exercise for most. they cant belive their neighbours would steal their paper. there is many factors that can change which mean the paper doesnt land on the bullseye every single day.
I have had a paper bounce onto the roof while i was doing a run one day… I told the customer, and i still need to go back with the ladder and get it out of the gutter.
i also had a customer who wanted me to throw the paper closer to the front door, which is a reasonable request, but he did it with such attitude that one of our girls was crying afterwards. so i made the effort to hit the front door every day on the full, which is what i thought he would want, but it turns out he would prefer to walk out onto the lawn each day than have an almighty bang on the door before 5am.
we also have had to run operation “garry glitter” twice now for nice customers who were having their papers stolen. i would put a dummy paper in the regular spot, but it would contain a note and a full canister of glitter, so when the theif un rolled the paper, it would look like the set of the 80’s TV show countdown. it worked both times straight away.
hey geoff…. have a nice day.
People right here in your comments is why Rupert Murdoch’s News Limited can get away with what it does and is doing to newsagents. Read my post. Respond to it. Ignore Geoff’s. The responses so far send News the message they were looking for.
News has said to you it’s plan at the moment is to do nothing. What are you prepared to do about that. Based on the above comments. Nothing.
Rocky the new circulation system.
I had to give up my delivery run last year so now it’s just retail sales for me. The agreement I signed to keep my retail sales dictates how and where I display papers and POS in store.
What plan should I have?
This lack of decision by News ltd has helped me make my decision. We will be cancelling our distribution contract to take affect in 6 months for both companies. I am over getting up at 1am to deliver papers knowing that I am actually not breaking even! For my newsagency to survive and prosper I need to put my energy into areas which can grow and make a profit. This is energy which I do not have at the moment.
I can understand the reaction to geoffs response but try to ignore it and think about the bigger picture. We all have geoffs in our life but the industry also has a lot of poor operators as well. I am not approving of the slack delivery but you can also understand it. Why would you have high motivation to do something which offers you nothing in return.
Each newsagency has to make its own decision but why would you continue to do something which gives you no return. Whilst at the same time physically, emotionally and mentally ruining you.
I cant wait to not have to worry about late deliveries, wrong deliveries, massive heralds, inserts, 1am alarms. Bring on 6 months I say!
Wend I am surprised about such an agreement. Who is it with?
Chris, you won’t regret it!
Mark, the Geoffs of this world deserve to have the piss taken out of them. We’ve also copped the diagrams with the proverbial bullseye (a big red X), the whiners, the bullies and the tantrum-chuckers. And were able to laugh at them. And jumped for joy for the few who ‘took their business elsewhere’.
When we handed over our run, those same customers found themselves even more hard-done-by. Only because the agent we handed over to were (rightly!) less prepared than us to go beyond the call to keep these people happy. After all, their run was huge compared to ours, so their terms are much firmer, and their practice much tighter.
We did enjoy being an alarm clock for certain people who wanted doorstep deliveries as well – we don’t miss it that much, though 😀
As for News’ stalling, I think we know exactly where we stand. It’s about time to call their bluff.
Mark’s right – if we do nothing, then they’ll keep stomping all over you without conscience.
Thanks Mark – but what is the new circulation system ?
Y&G I disagree. We have shown that we would prefer to have a fight on minor issue while the main game passes us by.
Rocky it’s a new system being talked about by News. Some think it’s a bit of smoke and mirrors.
You are right Mark. The big issue is the lack of future that News Ltd is providing. Not just for us already in the game but for any future investors.
If we decide to sell our newsagency in the future we will be advertising our merits and making sure any potential buyers realise that newspapers is no longer our main product but mearly a minor player in our future.
The inability of news LTD to make a call on this is a real blow.
For not just now but the future of all our business.
I have both Retail and Distribution. And from all the sums I keep
running the delivery side looks to be about break even and if it
is that close you would think the real cost would be a lose to me
on the run. Now having said I do not do my own run but I employ
Someone.
I also see a lot of business interruption with handing back the
contracts with paper sales (retail) being ignored from both parties.
So I am in the same boat as News atm and unable to make a decision.
I see of late a few around us looking to sell there runs but I don’t think
This will happen and there comments are that there not even having
tyre kickers in atm.
I just hope the ship we are in is not called the Titanic.
Better still for News and Newsagents get some people in that know how to move out
Of the way of that Iceberg that we can all see.
Bretts, Our future is up to us, we have to set our own course as business owners and leaders. We have excellent growth opportunities if we understand our customers and serve their needs. We transition from being agents to business people.
While I deplore how News has gone and is going about this, they are doing what I expected.
Our situation is ours to own and resolve.
mark
i would have thought that it is not up to us to fix home delivery that is newslimiteds problem i think that we should tell them what we need and if they dont like that then we must be prepaid to walk away.i have always thought that we need to be paid what it cost to post a letter 60c per day your thought would be appreciated
Andy and others – the writing is truly on the wall. Distribution of newspapers is
a dying form of news and we have to accept that and move on.
I would/could happily leave papers out of my retail mix now and I don’t think my business will suffer because I am inputting
energies into things that have a future – stationery, mags, and gifts and cards.
These genres are working well in our business so why waste time and energy on
stuff that isn’t working for us.
News Ltd is stringing the distribution agents along until they decide to pull the plug, and we would do the same if we were
in their position.
News Ltd employees must be feeling just
like distribution agents at present – unsure of their future.
Mark, it’s a direct agency agreement with News Qld / Queensland Newspapers.
Andy, with the utmost respect … that’s how an agent would look at it.
The future of your business is wholly up to you.
Iam not at all suprised by News Ltd response.
News Ltd have known for the last 10 years the delivery system required a new approach,but after countless submissions have refused to do anything.
With income from delivery rounds falling and costs rising Newsagents really need to do their sums and decide if the home delivery portion of their business is a asset or a liability to them. Would their buisness be more attractive to a potential buyer with or with out the round ?
I was watching a interview on TV with a well know retired journalist, he was asked what is the main differences working in the industry in the 80s compared to today.
His reply was simple but also profound he replied “Newspapers were today operating in panic mode”
This may seem a bit simplistic but I think it really hits the nail on the head. Iam sure there are some News Ltd excs who understand all the issues but I feel they are limited in what they can do buy the company bean counters
Better financial returns to Newsagents. Rationalisation of smaller rounds and a exit strategy for those who wish to leave the industry are on the wish list.
News Ltd currently are managing some rounds where newsagents have just walked away. News Ltd clearly knows from this, the costs involved to provide a home delivery service.
There are a number of worthy comments here, but the reality is only 20-odd agents have offered a comment, to which the majority were whinging about Geoff the non-newsagent.
A much bigger reply or reaction was made when Fairfax attempted to FORCE newsagents to insert The Guide into newspapers on a Sunday mid last year.
Yes newspaper delivery is costly, yes ALL newsagents should receive higher commissions on Newspapers and Magazines……but vote with your feet people.
Last week I made the decision to remove The Australian from sale in my store due to the comments by Mark Day. I explained why to customers by posting a sign on the newspaper stand. Not a single complaint. Customers understand when it is explained to them. I have simply converted those shoppers to the Sydney Morning Herald. But the reality is I am one agent, it makes no difference to News Ltd. As a group or industry, such a reaction WOULD make a difference.
Personally, I would like to see marketing groups such as NewsExpress or others out there take a stand (obviously with consultation with their members) and tell these companies “hey, you know what…..this is how things are going to work from now on…..take it or leave it”.
Is this possible Mark, or are Marketing groups legally unable to make such decisions for their member’s?
Kyle,
it’s newsXpress.
I don’t think newsXpress would publish here or anywhere what it may or may not do on an issue such as this.
That said, newsagents cannot dodge their personal accountability on this issue. Newsagents must decide where they stand and act accordingly.
If I were News, I would be working on a plan to reduce home delivery costs as I’d probably think that this is the best way of retaining home delivery customers. I would not care about anything newsagents say because I’d expect them to be too scared and disorganised to take me on.
Just saying…
Unfortunatley all Rupert understands is might is right and stuff the small guy. This means some where along the line we may well be forced to take News on and lets hope if it comes to this we will do it as a collective otherwise Rupert will walk all over us.
By the way if their horse racing tips are anything like their political tips I would advise punters to look elshewhere.
With regards Geoff do not feed the trolls.
Peter
Has any legal action been investigated against News Ltd? Surely they cannot continue to provide our INDUSTRY with such uncertainty.
Their indecision is costing families; from selling your business to new business people entering the industry.
The banks won’t go near the industry because of the indecision from News Ltd; this is not acceptable, and bordering on being purposefully ignorant!
Poor Geoff one lost customer for one of you
Kyle
I applaud you for taking a stance, I also agree with what you said, however it is so much more complicated.
a) It is hard for business people to take a stand, the Newsagency channel feeds people, pays mortgages, pays employees and it is such a hugh ask without any hint of a plan.
b) Their is not a Leader as such, people certainly would not follow me, however I believe a good perecentage would follow Mr Mark Fletcher, however I do not know what he is thinking, we must remember once the can of worms opens…………..
c) The responsible option would be legal action but again refer to b) – I am unsure what the Associations would feel about this either. Their would be a need for unity (which is a dirty word) between all parties including Marketing groups and Mr or Ms J Blow to help financially and support the edicts of such a group if the industry went down this road.
While I am no lawyer, there are limits as to what newsagents can collectively do on this issue.
On the legal front, what action would people suggest? I stubble to see one try as I might. Yes I think that News has acted in an unethical and immoral way. But I can;t see what law they have broken. Others closer to what News representatives said and when might have an opportunity in their words.
Thanks for letting us know what you are thinking.
In regards to what Law/s they have broken it is difficult to say because good legal advice has not been sought as yet.
Some suggestions on Compensation for the Newsagency Industry are written in your post today regarding
News Limited in crisis on newspaper home delivery.
Its crazy how News Ltd can circulate to Newsagents and expect you to pay the account when “next door” they come free and given out free.
Although I cannot think of the legal term for this, they are driving customers away from Newsagents. Gee I wish I had a few million.
They have driven people away from Newsagents also with the once a week free paper depending where you are, that needs to be looked into also. I am sure people have better ideas than I have given. News Ltd is really on the nose and it stinks.
Isn’t it iilegal for a supplier to force a retailer to sign a contract which requires the retailer to lose money?
Thats exactly the situation for us and I’m sure many other small distribution agents.
Derek I’d certainly like to see a test case on this as such an effort could at least see the issues tested in an independent forum.
How could a test case be set up, a broke newsagency cannot afford to go to court.
H – I see the Irony in that.
Mark – Would a test case be the Newsagency Channel or an Individual Newsagent?
If it is an individial Newsagent the rest of the Channel must if they are able too contribute to cover costs.
Mate – it would take 5 years to get into court.
Look, we are pretty much stuffed… BUT, rest assured, we are NOT ALONE – feel better ??
h, nonsense. We are not stuffed. Since 1999 and deregulation we have owned our situation. Some are sucking lemons and others are drinking lemonade to pinch an overused analogy.
Mark, Bill Shorten was on Q&A last night (Mon night ) ABC, about ten mins from the end he muttered something about pharmacies and newsagents being “protected by regulation” and that had to stop. If a Minister of the Govt of 2012 doesn’t understand that we newsagents are now “unregulated”, then who else is going to think so (well, we are “regulated” in so far as we can’t charge a break even fee for newspaper delivery).
I have not yet had time to find a transcript of review the program, but when I do I will send the link to the ANF because I believe they need to write to Mr Shorten and educate him. If we newsagents are “deregulated” why can’t we charge any delivery fee we wish?
h, I have a post I am working on for tomorrow about Shorten’s ignorant comment. I will be sending what I write to Mr Shorten.
We are not stuffed.
Well, OK, you and I may not be stuffed Mark, but Shorten wants us stuffed, and the banks believe we are stuffed……I don’t want to see any other newsagents stuffed through no fault of their own either !
I very much look forward to hearing what you say in response to Shorten.
h, I disagree. I don;t think that Mr Shorten wants us stuffed. Indeed, I don’t think any politician wants us to be stuffed. I do think that many of them are ignorant.
H you can charge any delivery fee you wish. The publishers can’t stop you from increasing. What they can control is how much they pay you for delivery to their subscription customers. That is subject to your contract.
h – I do hear your frustration I think, The treatment to the Newsagency channel really sucks, and I am of the belief if one can to speak up about it, which you do.
Like the many, I would like to start to investigate litigation to understand where we stand.
I certainly would not want to go to Fair Work Australia