Newsagents who took on the Naplan educational book range from book distributor Hinkler have been surprised to see the same range at Woolworths check-outs at a 10% discount.
Had they been told Woolworths would stock the Naplan books, newsagents I have spoken with have told me that they would not have taken on the product. It’s my view that Hinkler has disrespected newsagents by not disclosing the Woolworths move.
As Australia’s supermarket duopoly push more into our space – and they will – suppliers to newsagents who also supply the supermarkets need to be up front with us about their arrangements and plans with supermarkets. To sell to newsagents without disclosure will see their products dumped and, sometimes, alternative products sourced.
Our channel is different to supermarkets. We offer a value-based service whereas the supermarkets usually only compete on price. In pursuing their price strategy they disrespect brands. Suppliers who care about their brands will focus more on newsagents and less on supermarkets.
Yes, we attract different shoppers, but they are not ad different between newsagents and supermarkets as they are, for example, between newsagents and deep discount stores.
What Hinkler has done to newsagents with this Naplan range sucks.
Mark, out of interest who made this deal. Did Hinkler approach Woolworths and offer the deal.
Gregg I don’t know. My issue is more that it was not disclosed to newsagents who were offered the range.
Its a no brainer -I will cut business dealings with them immediately. Let them do business solely with woolworths in future. Let them rely only on woolworths trade to keep them alive. (I have some dairy farmer mates).
Pascal Press also do Naplan – give them the business instead.
BLOODY DISGRACEFUL…….!
They also did this with Diary of Wimpy Kid at 50% discount. Our rep. said that he hadn’t been informed that they were doing this but we have made the decision not to do further dealing with Hinkler if this type of action continued.
Hinkler just joins the long list of suppliers that expect newsagent to support them but then turn around and do deals with the majors. But do not cut your nose off to spite your face, Hinkler are not alone, card companies, mags, gift suppliers all shaft us IF the big boys come calling.
Take the toy peppa pig from the ABC show, at xmas last yr Target bought the entire range exclusive so toy stores, newsagents and other shops had orders cancelled by the supplier to keep them happy. These suppliers are now back asking us to support them once the big boys have used them up, but if you say go jump who loses out if not us. We just have a long memory, so they are last paid.
i have already stopped ordering any books thats from hinkler.day by day i think woolworths and coles will control 97% of the market.. shame on woolworths for competing with small businesses.
This is extremely disappointing. I have been working on building my range of educational titles from Hinkler to revitalise book sales. They do nothing to encourage or reward us by selling to discounters and only bastardize the market and loose our business.
they have been discounted at QBE book shop(i think it was) for weeks now
What if Hinkler gave them the same or lesser terms than you, yet they are just discounting? From my experience newsagents typically (outside the top retailers) don’t discount or if they do,don’t do it well.
Its no different for mine from newsagents selling a book or say giftware yet Big W selling it too at a lower RRP. Its the retailer that typically discounts.
No doubt Hinkler would have approached WW direct, why wouldn’t they? – They and approx 2 other publishers are the only ones that range books in the chain, they are going to give them one of their most popular releases. Do you really expect full disclosure and exclusivity?
I have devoted a fair chunk of realestate to books with hinkler being one of the main suppliers so i will be sticking with them even though they have been doing stupid moves like this .
I think we need to hear from Hinkler on this matter, they should give us an explanation on why they did this and why we should continue to support them.
When is enough going to be enough for Woolies? Let another channel build a product and then pounce on it. Woolies told me years ago that they only stock what there customers ask for. If there customers are asking for educational book supplies then let them do text books as well, bet they dont for the margins offered on those. Whats next……funerals, medical centres, caravan parks……?
Joe, that’s not the point of the post. My issue is that Hinkler did not disclose to newsagents that the product would be in Woolworths.
You only have to look at Hinklers website to see that they are promoting where to buy as all the major chains but not one group in our channel. That sends a clear message.
Richard very true i have never realised that in the past . A simple from all good Newsagents would do
or just to rub a few up the wrong way put a big ‘N’ there . 🙂
The N would achieve nothing. It’s a nothing brand and has no recognition among consumers.
yes i have heard this before hence the rub a few up the wrong way part of the comment . I also disagree with you on this and a lot will disagree with me . The bulk of my customers are elderly and i know they do recognise the ‘N ‘brand .
I think you took the bait at Shuans’ comment Mark ! 🙂
I think it’s already become very obvious that many suppliers are willing to push volume at lower margin and give stuff away through the big two rather than push their product in other ways that long term make more fiscal sense. Hinklers just one of the many really.
I was actually approached by Home Ice Cream today to put in a stand/freezer unit and I’m really tempted to because at least I’m dealing with another small business owner after it’s set up and it’s something that I know the big chains can’t get AND it competes very well with what they can get on price.
Doh..I typed too slowly !
Slightly off topic.
Shaun I wonder if it’s that they associate with the “N” brand or purely the Newsagency name ?
Recently as a bit of an exercise I was surveying some of my customers while chatting to them over the counter about whether they could name any of the marketing groups or associate any particular brand with newsagencies. While I had a handful of brand names what really surprised me was that few (and I also have alot of elderly customers) could actually name any of the marketing groups but knew the various Newsagencys purely by location. Makes me wonder how much recognition is still in the newsagency shingle as opposed to the brandings. Still thinking of how I can refine my survey further to get a more definate answer.
As far as the N goes more for newsagency . If I was to see an N out front of the building while driving past I would think there is a newsagency in there somewhere . Besides all that I was having a simple dig a light hearted one at that and wasn,t really looking for a debate about it ,so back to subject .
Talking of Hinckler how the Easter book packs going . I thought it was a great range this year .
Yep, knowingly took the bait.
The N is dead because it has no discipline, stands for nothing, has three or four versions and is not recognised by consumers. Okay maybe is some rural / regional areas but for the vast majority of Australians its not a brand.
I am with Paul in that I reckon a lot of people do know that the N stands for newsagency.
Just as good as say newspower I say.
Paul, your comments about suppliers pushing volume into mass at reduced margin is not 100% accurate, in a lot of cases mass pays more for products than the independant channel, the issue is and what some suppliers need to realise is that once the stock is dropped all control over pricing is lost, mass can sell or dump products as they please, regardless of the invoice price, this is a common misconception that suppliers discount to mass, its certainly not ALWAYS the fact at all.
Im not sure that the “N” logo can even be called a brand. Its an identifying symbol for a small number of customers. It’s the equivalent of having the type of business displayed outside your shop – “newsagent”, “supermarket”, “pharmacy”, “bakery”. These words let the consumer know what segment that business deals in – but tell them nothing more about what they should expect from that store.
When one sees the Woolworths, Coles, IGA, FoodWorks and SPAR logos they associate certain experiences, feelings and expectations with each brand. If every store simply had a giant “S” out the front what differentiation would there be between stores?
Imagine not being able to identify all the Pharmacies for lack of branding! Many suppliers simply would not invest the time, effort and money into their channel without it.
Anyone looking to the future of the channel also needs to accept that the “N” has little strong recognition with middle age consumers and absolutely none with younger demographics. Why invest in logo that is literally dying off?
customers do not care if you just have newsagency out front or newspower . . A challemge for you today ask customers where A newspower shop is and i bet that they wouldn’t have a clue ask them where some Newsagents are and you will get a list . I get handed over magazine cards from different branded newsagencys all the time so i feel the logo or name is not even relevant half the time but the word newsagency is .
I don’t necessarily disagree with you Mark and Jarryd but I’m interested in the your claim that there is little to no regognition of the N logo and what (if anything) it stands for. Can you please point me to the customer research that supports your view.
Ted there is none just as there is none supporting recognition of the N.
What we do know is that there is no discipline behind the brand, there are at least three quite different versions of the brand, the brand was started as a home delivery related brand, there is no value proposition with the brand and, in the city, is where many newsagents refuse to use it.
Jarryd has made very specific comments about specific demographics. I thought there must have bben some research that supports this.
Hinkler baby books $4.99 at local ALDI store!
Hi Ted;
We did a customer survey several years ago regarding the ‘N’ Logo and what it stood for……..I can tell you that not one customer understood what the ‘N’ stood for on my shop; which is what i expected.
Ted,
The younger the demographic the less likely they are to recognise the “N” for the simple fact that its use has diminished over the years. It would be highly unlikely that a decrease in exposure would be lead to an increase, or even plateau, in awareness.
SHAUNS,
Some customer do care. The brand awareness is not currently as great in the newsagency industry as in others. But the same would have been true for many industies in the past. Petrol stations, pharmacists, bakeries, etc. It takes time and work to reconfigure how consumers view both the industry and individual stores.
#23 Robert. Your right the fact that the comments are not 100% accurate. It leaves out the fact that the majors make you pay ‘000’s in co-op money that buys space and then put that into price.
No retailer in my 20 years in retail on both sides of the fence has ever used a brand that was not a market leader as a loss leader. Oh and then there are other rebates and ullage allowances and the like. Mate give me a break do you think we all came down in the last shower. Were are youfrom?
Aware of how it all works thanks Bill,Ive had a little experience dealing with mass as well.