Click here to see the updated FAQs from News Limited T2020 and here to see the letter sent earlier this week. I have spoken with Catrin Thomas this week and am assured that News is genuinely listening to and engaging with newsagents through this trial in Queensland. I saw this happen first-hand earlier this week between a newsagent and News to address a concern over the recently announced delay.
Having been involved in this process since it began three years ago I’d note that the approach of News over the last six months is completely different – more engaged with newsagents, more flexible and more transparent – than in the two and a half years prior. It is good to see News working direct with newsagents. This is a project to be worked on operationally by the contracted parties and not through a third party.
I have a vested interest in T2020 with 1,700+ newsagents using my Tower Systems newsagency software, many of whom offer home deliveries. I have no deal with News.
I understand what they are doing and why. It is necessary structural change. Many newsagents saw it coming years ago and made appropriate business decisions. While this is not an I told you so, I’d note that I sold my newspaper home delivery run in late 2006. I explained here why I did it and what I thought would happen with runs. Associations and brokers had this same information. Industry leaders had the information too. Yet many let newsagents steam ahead thinking it was business as usual for newspaper home delivery.
Newsagents are complaining about News Limited and what they are doing with T2020 should look back at themselves and the newsagent leaders over the years and ask why they did not act before.
Mark
Newsagents have a right to complain about T2020.
Derek they should also be accountable for not acting earlier when there were signs of what was coming. I am suggesting balance here.
Ok
So whats happening with T2020. Has anybody heard anything about the triage in Queensland?
Ricky , I think all the answers probably explain what is happening ….
I’ve handed my run back early and will do my last deliveries in just on 4 weeks yet QNP still hasn’t told either myself or my customers who’s going to take over the run. I do think that while they are trying hard and have been very amenable to me they are struggling with the change over and processes themselves. It sounds like Fairfax up here is having an even worse time of it as they are just coat-tailing QNP and are basically stuck with whatever comes of it.
@Paul
Did you only hand the News Ltd run back or Fairfax as well?
Anyone know what happens with the magazine accounts?
Nothing announced yet Dennis. I think many newsagents left with just magazines in the distribution side of their business will pull out.
So Mark are you saying that Agents that News have told will be purely retail, might still have to run a distribution business purely for Magazines.
It’s unlikely that the merged distribution agents will want magazine distribution. Theres no money in it and why would they put themselves out just to be treated like a dog turd by a magazine distributor.
Dennis, News has not told anyone they will be purely retail, they in the middle of a trial south of Brisbane creating larger territories. Any newsagent participating could tip their whole distribution business into a new distribution only business – which could handle magazines too. I know of merged newsagents who happily distribute magazines.
Newsagents who give up their newspaper territory will need to sort out what they do with magazines.
Brett, I’ve handed back both and will be happy to have nothing to do with either apart from retail sales ! 🙂 I’m already in theprocess of getting quotes to refit the area where the papers currently sit and will use the space for more profitable lines and new products.
I didn’t have any direct supplies or subs apart from a Coles across the street and no magazine subs. If my maths are correct I’ll actually put cash back on my bottom line by simply dropping the run (which I had contracted out anyhow)
It all seems to have gone pretty quite after all the fuss last year. A lot of newsagents want to get on with the new direction but they’re being held up by the publishers inertia on the issue. If groups of newsagencies can work together and consolidate territories in a customer friendly way, why doesn’t News Ltd just let them get on with it. The grand experiment in Queensland can hardly have any relevance in Victoria.
I made a call this week it was has been a lot more stressful, emotion then I had thought it would be lol
But I am going to cease delivery of Newspapers and become retail only.
so T2020 has been suspended , what a disaster .
indeed, but atleast the risk of losing your distribution to a rival neighbour is now gone.
still looking towards voluntary consolidation though, hopefully News can come to the party with acceptable terms.
With so many newsagents either in the progress of amalgamating or deep into the process of a feasibility study this is a terrible indictment on the irresponsbility of the announcements made by News Ltd last August, and also the complicity of the associations slavishly endorsing the announcement.
What happens now to the distribution contracts that haven’t been renewed (pending the announcement). What about those who’ve already amalgamated. While I agree with Gary’s sentiment I don’t agree with his understanding. Indeed the risk of being swallowed up by an aggressive and well connected “neighbour” could be greater. An open slather approach is on the cards and this could be a huge problem for a lot of smaller territories.
Ricky, you are absolutely correct, predatory acquisition will become greater without the criteria that T2020 gave.
This announcement rightly favors the bold who chose to consolidate and forge ahead beyond T2020 as if it didn’t or hadn’t existed.
Consolidation is extremely difficult and complex, confirmation now by News Ltd to that effect.
What we have so far is the associations jumping the gun with announcements ahead of details from News.
Mark i appreciate the fact that the QNF advised us via email what is happening because without that we wouldn’t have a clue .Wether it be the associations announing it or you announce it on here whats the difference ?
shauns, With Mark putting info here we get to know quickly what is happenning. We are not in an association so how long would it be before we were told by News?.
Maybe 1 reason to join then .
We were in QNF shauns.
Shaun my comment was not about a race to disclose. It was about spin about why the decision has been made.
It’s what News announces that matters the most.
And when will they make an announcement and do we go along with what ever their new plan is , how much longer could this possible be dragged out for
very disappointing indeed.
maybe news has worked out that it will be much cheaper to drip feed current distribution agents as they have done for years, than pay what it actually costs to distribute their product under T2020.
im sensing the end of distribution regardless of what news does now or in the future. happened with bread and milk home deliveries as soon as it proved uneconomical, its only because newsagents carried the actual cost themeslves that it has lasted this long.
Rick, there are good distribution businesses out there and while we have newspapers to deliver and customers that enjoy their papers home delivered, these businesses should survive.
Bread and milk were essentials, newspapers are a luxury that people choose.
I think we need a smaller and more flexible version of T2020 to suit all the different areas and newsagent’s situations.
We also need to dictate our own delivery fee for our own areas to run our businesses as best we can. Costs are far higher in regional areas than city and current petrol prices are making it even harder.
jenny
the key is being able to set our own delivery fee pure and simple. news can offer all the deals they like but it must not include delivery. as you say the newspaper may be a luxury and it should be user pays for the service, at the moment its the newsagent covering part of that cost
NEWS LIMITED DISTRIBUTION MODEL REVIEW
QUESTIONS & ANSWERS (ALL NEWSAGENTS) APPROVED FOR DISTRIBUTION – 7 March 2013
Voluntary Consolidation
1. What does Voluntary Consolidation mean?
By ‘Voluntary Consolidation’ we mean newsagents with current distribution agreements who are interested in consolidating their services across more than one distribution territory can discuss this and then submit a proposal to News Limited for consideration.
We will consider each proposal on its individual merits – including whether the proposed consolidation makes sense geographically, practically and in efficiency terms. If approved, we will offer a contract for servicing the larger consolidated territory under the terms of our standard distribution agreements that are in place across the relevant state/territory.
2. What is the scope of service level expected from distributors?
The scope of service level expected is as per the terms of our standard distribution agreement in place in your state/territory.
3. Are there any criteria around voluntary consolidation? If so, what are they?
News Limited will provide guidelines for newsagents interested in voluntary consolidation in due course. However there will be no minimum volume requirements.
4. Will News Limited allow consolidation of territories that are not adjoining?
News Limited will provide guidelines for newsagents interested in voluntary consolidation in due course.
5. I’ve already bought or leased some additional territories. How does Voluntary Consolidation apply to these?
News Limited will consider any voluntary consolidation proposals which include these territories on a case by case basis.
6. Will I be disadvantaged in any way if I choose not to consolidate? Or if I choose to consolidate sooner rather than later?
Newsagents are free to make commercial decisions for their individual businesses taking into account all available information. Given the rapid and ongoing shift in industry trends, News Limited will continue to review and evolve our approach, and may change our strategy. We will continue to inform newsagents in this regard.
7. Will you force consolidation upon me at some point in time? At this stage, News Limited is considering proposals for voluntary consolidation. Given the rapid and ongoing shift in industry trends, News Limited will continue to review and evolve our approach, and may change our strategy. We will continue to inform newsagents in this regard.
8. What if I don’t want to consolidate or have my current area consolidated? Can I keep going as I am now?
Yes but given the rapid and ongoing shift in industry trends, News Limited will continue to review and evolve our approach, and may change our strategy.
2
9. I bought extra territories because I anticipated I would be part of subsequent rollouts and now you are not progressing. I do not want to continue to service them – what are my options?
Throughout the trial we have been clear that newsagents are free to make commercial decisions for their individual businesses taking into account all available information but that no assumptions should be made as to what would happen after the trial. If you decide you don’t want to deliver newspapers in your territory you can terminate your current distribution agency agreement with us by providing the contractually required written notice. The termination of your agreement will also trigger the termination of any aligned retail agency agreement however you can apply to retail our newspapers by applying for a sub-agent agreement, or a direct relationships newsagent retailer if you choose.
10. Will you be continuing with the national subscriber migration?
News is keen to have a direct relationship with our most loyal customers including those who subscribe to our current print products. We are currently reviewing options for the best way to achieve this, but it is our intention to continue with the migration in the trial area in South Brisbane.
Distribution Agreements
11. Will you be issuing new contracts for voluntary consolidation and what will be the term of the new contract?
On a case-by-case basis, News Limited will consider proposals for consolidation of distribution territories from interested newsagents, across all states and territories. If approved, we will offer new agreements for servicing the consolidated territory on the same terms as our standard distribution agency agreement in the relevant state or territory including as to term and termination. This means they can be terminated at any time without cause, by you on 3 months notice and by us on 6 months notice.
12. What has happened to taking into account changes in CPI?
The terms of our current agreements continue to apply though given the rapid and ongoing shift in industry trends, News Limited will continue to review and evolve our approach, and may change our strategy. In addition, News Limited intends to undertake a complete review of the monies paid for distribution services across all states and territories. We will also review our retail commission structure.
Country Areas
13. I am in the country. Consolidation isn’t possible. What is your plan for me?
News Limited intends to undertake a complete review of the monies paid for distribution services across all states and territories. We will also review our retail commission structure. In addition, News Limited will continue to review and evolve our overall approach, and may change our strategy.
i am interested in #13 how long before we get answers , or should i say how long will this new idea be dragged out it has been going on for way to long now
Shaun, a glass is half full approach could be – this is the trial working and News responding to newsagent feedback.
Firstly, unfortunately Gary (post 17) News Ltd have never offered acceptable terms, why would they start now?
In regards to the announcement by NewsLtd basically, News Ltd has stripped the negotiation ability of the newsagent and is returning to the current outdated contract model which newsagents have NO ability to negotiate on.
Rick and Jenny (post28,29) have hit the nail on the head. News Ltd want to dictate terms, and T2020 opened the door for the ability to win a contract on your terms.
In our circumstance, we shut down our run in July 2011. Prior to giving notice of shutting down our run, News Ltd would honour unpaid customer debts up to 6weeks. When it came time to settle the account, News Ltd REFUSED to honour customer debts and sent a debt collection copmany after the outstanding debt. They have also told the new distribution agent he cannot deliver to us until the debt is paid.
Across town another agent did the same, but reluctantly paid all the debt, after we told him of our circumstances. He was then forced to pay a $2000.00 bond to the new distribution agent.
So let’s all stop liviing in a fairy world and come to grips that Publishers screw newsagents. Associations bow to pressure from Publishers. Newsagents put up with it, and customers don’t care!
Brett S @ 16 if the rest of your business is in good shape then getting rid of your delivery run is proabably the best thing you could do. I handed mine back at the start of T2020 as while I would have been willing to consider a smaller consolidation 10K papers was out of my reach and capabilities. I’ve found there has been little day to day change to my business, no loss of customers & since the handback and if anything my cashflow has improved greatly. If anything I’m now seeing more customers in the door daily.
In my opinion people are living in the past if they think that having a run or not is significantly going to alter who comes into your business assuming the business has something to offer customers anyhow.
The only concern I have is that the territory I surrendered voluntarily under the planned t2020 effectively had little or no commercial value under the t2020 reacquisition plans. It now appears under the new “free for all” model that the territory may have a significant value attached to it and that “someone” has acquired territories at little of no cost. Will be interested to see what legal advice is in relation to this and any cause for compensation.
@ Paul cheers for that feedback.
After reading about the outcome of there T2020 failings.
All I read is that the real world finally hit home to them and the real cost of delivery and there not going to foot the bill for it. Why when they have a Newsagent to take the diminishing returns.
As I said I have made the call to cease all deliveries and the more I look at it the more I wonder why it was such a hard call at all.
Thought I would post here again.
I will be delivery free from both News and Fairfax soon a person has taken over my and some other runs.
I have been asked to become a pay station for there accounts (my old customers) but I am unsure.
I will not loose any of my customers by doing so?
Not really sure if this will benefit me as much as the new agent involved.
Has anyone else surrendered their territory and became a pay station if so has it been a win for both parties?
Did this in 2008 at by Forest Hill business. negotiated a % for taking payment. Worked a treat. Maintained customer traffic and was a face for the distribution business. The success was due to an excellent distribution newsagent and us working well together.
Brett, I was in the same position as Mark after selling my distribution round and I
refused to become a paystation because I
knew my customers would think I was still
delivering and I would get all the phone
calls and the ons and offs etc so I said “no” and it did affect my business not having those people coming into the store.
However, I am not sorry I made that decision.
We ended up shutting the doors on our
strip shop and making our small shop in
the mall into a larger shop in 08 and then
we were “required” to move to smaller premises in the mall just 6 weeks ago so I
have gone right around in circles and I don’t know what the outcome will be for the future.
Having said that I am totally free from distribution and very very happy about that.