Victorian newsagents received notification last week of cover price changes coming for The Age and significant changes in the structure and quantum of fees paid to distribution newsagents for home delivery. These changes are part of the significant changes being lead by Fairfax as it restructures its business in response to changes market conditions.
The changes coming in Victoria are similar to but not identical to the changes brought about recently in NSW. It is the difference between the approach in the two states which is challenging implementation inVictoria.
Mark,
Will there be any software changes to reflect the new commission structure?
Dean
Enjoyed the spin from Fairfax regarding newsagent income, cutting our margin from 26% to 23% in a shrinking market will not be compensated by a miniscule increase in the effective fee per copy. Just helps focus the mind on product lines that have potential for growth ie not newspapers!
Yes Fairfax are trying to spin it that the old commission payments on on counter sales doesn’t make any sense, and that if they didn’t change our earnings they wouldn’t increase the cover price. They are trying to make us believe that they will go backwards if the cover price goes up the same way they did years ago with home deliveries (that probably did make sense then).
This does not make any sense in this case though. If a newspaper goes up by ten cents and the publisher gets to keep 75% of that and we get 25% of it, how is any one disadvantaged? It only make sense if the age is being sold at less than the cover prices, and if they are doing that then more fool them!
The blank look on the face of my rep when I explained this was priceless! At least they seem to believe their own spin even if we dont!
We need to get over this change. It’s the new world. Moving from the traditional commission structure is a good move for newsagents. Publishers owe us nothing.
Mark how is move from the traditional commission to this new structure a good move?
Andy it breaks us free from the agent model. We need this to happen to open our eyes to the future.
Mark
iam still not sure how breaking free from the agent model and making less is a good move?can you tell me how?
Andy, it clarifies the focus of many newsagents who thought it was business as usual and that publishers would lead the model. This has been the largest single barrier to newsagents finding their own and individual futures.