I am told that at a recent sales meeting, Ancol management disclosed that march sales were down 30% – primarily due to the failure of its subsidiary KW Wolesalers – to win a schools supply contact. I’m also told that another five employees have been retrenched. If true, both bits of information are not good for newsagents as the shareholders of the business.
Ancol continues to fight the state government on its failure to win the schools supply contract. With the lobbying spend in excess of $100,000, it’s no wonder South Australian newsagents are frustrated. As I noted previously:
If it was up to me, I’d be questioning the value of the $100,000+ spend on lobbying. What if this same amount was spend on TV in the state promoting newsagents as the go to retailers. The result could be better, full margin, business for more newsagents as opposed to discounted government business for the wholesaler.Ancol management have indicated stationery prices could rise , this is a worry for SA Newsagents who currently on average pay more for their stationery than other Newsagents in Australia
This is a big issue for SA newsagents. What if the lobbying achieves no results? Newsagents would reasonably question why so much was spent on a failed exercise. Without seeing the submission from Ancol it is hard for newsagents to know if their representatives put the best pitch forward to win the schools business in the first place.
The worst part about this is that we are being kept in the dark. As usual I suppose.
is it possible for gns to take out ancol? seems logical to me
I note ANCOL as supplier of the year at the SA Newsagents awards night – must be doing something tremendously right.
Someone has to win it and we don’t have
any suppliers in SA so it was probably a no-brainer.
I agree with Mark, the amount being paid
to lobbyists is money wasted. Lobbying
should have occurred B4 the horse bolted and not after.
I have always disagreed with Ancol being both a wholesaler and a retailer (to schools). I always felt that it undermined the newsagent when Ancol was/is supposed to be for the benefit of newsagents.
I don’t know that the school scenario ever
benefited newsagents – it actually took the
job from those newsagents who were working very very hard in that area.
June what surprises me is the apparent lack of engagement by Ancol members in wanting transparency on the issue at the core of this.
Ancol management have indicated the loss of the schools contract could lead to higher prices for our stationery . We already have the highest wholesale prices in Australia, iam concerned we will be uncompetative .
As Newsagents every day we go to work we face competition in the maket place. Iam annoyed that Ancol continues to blame the Government for their woes, if the Government wish to tender out their stationery requirements thats their decision .The fact that schools were included and other states haven’t included schools I say so what . Ancol needs to move on and look for new opportunities to grow its business
Ancol are asking Newsagents to promote a petition which will be presented to the SA Government. The accompanying advertising material which Ancol management has written is concerning and misleading .
The brochure states this decision by the Government puts the viability of 300 “Ancol Newsagents ” in grave danger.
This statement is just not true, talking down our industry in the public forum is irresponsible and shows a lack of regard for SA Newsagents . To promote the view that SA Newsagents are the aggrieved party may win support from the public and get more signatures ,but we do not need to be putting doubt into the publics mind as to the viability of our businesses .
I cannot believe the Ancol Board allows this to happen. Newsagents will survive with or without Ancol.
Does Ancol Management and the Board really expect the Government will just hand the stationery contract back to them ? If the Government separated the schools from the contract then made the schools a separate tender does Ancol Management believe they will simply just win it ?
The Ancol Board continues to support the CEO by allowing more money to be spent on this campaign ,a campaign which has run for 7 months and has yielded no results other than putting the Government offside