One of my older newsagencies did not get newspapers today until 9:30am. Our distribution newsagent operates a retail newsagency in the centre. Their excuse was that they short supplied … not so short that every other retailer including themselves didn’t have plenty of stock. This is the same distribution newsagent who has blocked access to a raft of titles and about whom we have had to complain to publishers regularly with only mediocre success.
No wonder the newspaper publishers want to change the distribution model.
We have a great relationship with our delivery agent and are happy with the model. For 1/2 the commission he does all the running around and all I have to do is sell it and then pay him what we sell. I cannot see what more they can do for the pitance that they make.
Mark, I would have offered some of my beautiful Southern Cross Crackers at $139
and made a profit of $70 which would have
probably negated my newspaper profit for
the whole day (maybe the week M/F).
I’m sad to say I don’t worry about newspapers anymore.
Not sure how it would have been any different under the t2020 model .Do you know for a fact that all his other agents recieved a supply . To be honest if i had a newsagent next to me and i was missing stock and had to make up other orders well i would be supplying the ones furtherest away first and work my way back . Think about it as you are the bloke that has to drive all over the country side topping up orders because of missing papers .
Shaun, Regularly they make choices that favour their retail business over ours. I don’t have this problem in any other newsagency.
Yes.
They only have to walk 200 metres. Seriously.
June we did a bunch of good things. I remain frustrated that a supplier provides such poor service.
200 meters away yes this is what i mean , i personally would rather walk 200m when the extra stock turned up than hop in the car and do a 10k round trip or something to that effect . The way i would work it is complete the furtherest away first and then work my way back . who wouldn’t favour their own business before someone elses especially when you do not get along .
Shaun the only evidence of not getting along is this behaviour. Indeed, we try and spend more money with them and they block up. It’s dumb, poor business. They do not deserve to be our distributor.
We treat all our newsagents the same, if papers are late and or short we divvy up as best we can. We make good money from these shops and want to continue to. One of them is often rude to us and our staff but we still treat him the same as the others.
If your shops are that close to each other you would expect to receive papers at the same time as his shop, short supplied or not.
Is newspapers been sold from 2 outlets 200 meters apart necessary. I now have people demanding to be a sub agents when they are within 200 meters of one outlet and 300 meters from 2 other outlets in a NSW Country town.
Peter,
My rule is will having a new subagent grow paper sales or not. If it won’t then why create the extra work for yourself, unless there is a reason to like the existing subagent never pays on time. If it will grow sales then consider it.
Peter if it is a Newsagency then yes they should get papers no matter how close. Do agree though can’t give papers to every Tom dick and harry that asks for them.
The other side of the coin Luke is that for half the commission we (also a subagent for papers) get to count all papers that arrive, display them, pay staff to sell them, sell 8 and a bit to cover 1 stolen, count and bundle them at the end of the day AND pay shopping centre rental rates for the floor space they occupy not to mention copping abuse when paper promotions are run and we run out of the promotional item.
While papers drive traffic they are not overly profitable for retail only stores and are just something we do as part of the shingle. If we look at our figures realistically, the papers are only worth a pittance to retailers considering the effort and costs involved. Other products are far more profitable to us.
Yes Brendan, but the delivery agent has these same costs plus has to deliver them as well, fuel, car costs. I’m retail only but think we are getting a good deal for our 12.5 %. If you think it is too low then don’t sell papers.
I’m happy not to get out of bed at 2am.
SPOT ON LUKE
Mark is right.
Retail and Distribution MUST be separate.
I am retail only, but Distribution should be receiving commissions of 50% firm sale. The work involved in distribution is huge compared to the retail sale of newspapers. This may also encourage distribution agents to grow sales within their territory. They would then be able to sustain other costs involved in the delivery process which are not suffered by retail only sites.
Having said that, not all retail only sites should receive the same commission.
Retail only newsagents should be on 25%, with supermarkets on the next level of commission. Petrol Stations and ALL other retailers can fight over the crumbs.
It does not make sense for retail only newsagents to subsidise the sale of newspapers in 7eleven’s, hardware stores, cafe’s, fish and chips and other ridiculous places.
Might be wrong but isn’t the t2020 based on a whole new fee structure so it emininates the % and will be under a fee .I agree retail only should be on a minimun 25%