News Limited yesterday provided newsagents with more details of timing and clarity around process for changes to the distribution of newspapers up and down the Eastern Seaboard.
This latest statement confirms what was discussed here last week and makes it clear that the company is committed to newsagents and will focus on negotiating commercially viable arrangements for the distribution of newspapers.
i am hoping this presents an opportunity for me to make the run at least a break even proposition, we are now the only newsagent in town (we purchased the opposition). News will have to accept a reasonable offer from me as I cannot see anyone else doing it. Just have to work out what the actual cost is for that part of the business, has anyone done this recently that can give me a couple of pointers so I dont miss anything
Well there was no News Ltd run being delivered when I brought my now newsagency, I did take the contract back up (Fairfax was ongoing) only on the assumption (on my behalf) that the paper company would come to the party. So the time of reckoning is nigh!
But Rick, there is no way I will settle for breakeven if the offer is not profitable for me I will exit both parties runs happily and concentrate on the retail side. For what its worth my thoughts are that Delivery and retail no longer sit well together and harm each other. Each being ran as a stand along and needing to be profitable would be the way to take it imo
BrettS
thats not a bad idea, thanks
What will happen if i do not tender for the distritution and no one else tenders. My closed opposition is 27klm away and i cannot see them interested. Will News walk away from their subscribers or try and renegotiate?
why would you take the risk, put in a reasonable tender
Rick not saying i am not tendering just wondering what New’s reaction would be.
assuming you lost your existing territory to a higher tender. Who gets the sub agents and their magazine supplies?
Magazines do not go by newspaper teritorys
Shaun S, I found that when I gave up my delivery territory last year (Qld News & Fairfax), Network advised that I would not be allowed to continue magazine delivery to my subagents (despite the new delivery agent not being able to fulfil supplies for over a month). I’m not sure how the mag distribution companies plan to work around/with the new delivery territories, but I think they are going to be impacted. Perhaps that should also be a question distribution agents ask.
Rick, NANA have a spreadsheet available that you enter your data into which gives you a break-down on the profit or more likely loss of your run
I know a few years ago when i took over another territory (dumb move) i called up acp and they said they do not follow the other territorys and i had to get permission off the other agent before doing any deliverys and it would be accessed after 3 months and to date i never heard back from them that was over 2 years ago . Probally one of those situation that depends who you talk to and they have no written rule
I am not really interested in a per paper tender but more so a territory tender.
If that does not sit well with them so be it. Have to give the subs some more thoughts but I would not be thinking of adding then into the tender unless the billing was not mine 100%. And I was only delivering the papers to them and not having to worry about there paymentsI am not really interested in
I think newsagents need to wait to see the documents from News.
That sounds dire 🙁
WELL MY DRIVER QUIT on me yesterday (because once again papers where late) so today was the first day in 5 years i had to do deliverys and i must say that it s#cked . I really want to keep my customers but do not want anymore area to cover . I think the next couple of months with be one big headache
Is anyone seeing paralells between this and the restructure that is going on in the Victorian Taxi industry ? The bubble of their licence values is also about to be burst by structural change.
There is a difference though. No-one is wondering IF there will be a compensation plan for the taxi licence holders, rather the question is – how much will the compensation be.
We are still waiting to see if there can be a part of this issue where the newsagents associations might do something that is in front of the curve, rather than mimicing same day announcements from one publisher or another.
We are all speculating at the moment, as Mark says we need to wait and see the documents from News ltd to actually see what they are proposing.
As far a i understand they will be drawing up new teritory boundaries that we have to tender for the amount it will cost us to cover that teritory and news will reimberse us the cost, whether or not fairfax is doing the same no body knows as yet.My question is what happens to agents that have brought teritories from neigbouring agents, will they be reimbersed if they loose their teritory where is the legality in that and what does it do to the value of your business if you have your teritory taken away.
News ltd wants to have less drop off points and for home deliveries to be finished sooner. (for example say at the moment they deliver to 1000 agents. By having a larger teritory they might have to deliver to 500 agents ) this would allow them to get their papers to us by around 12.00am and for us to be off the road finished home deliveries by 5.30am at the latest.
eye I really do thing that speculation is fruitless this close to the announcement in Queensland.
Part of what has created the current situation is less than clear communication from newsagent associations.
What I would like to know is if this affects magazine territories as well? Consider this: i tender for and gain a neigbouring territory that has 3 service stations in it. I am expected to deliver newspapers to the service stations. Who gets the territory for the mags?
I dont want to enter into speculation – as I believe Nationwide deserve to get their offer out first before we all guess/panic. But it is time the associations show us their worthiness…
I think Marks point is that the associations have shown us their worthiness and it’s very “un”.
well its Friday?