OfficeMax, the US owned stationery business which is growing its presence in Australia, in part aided by some newsagents buying from them, is focusing more on small business customers with plans to open of a smaller format store in Chicago according to the Chicago Tribune.
While it may not be evident yet, the stationery category in Australia is in play in my view. Newsagents are losing more school booklist business, more newsagents are buying from US wholesalers – Staples and OfficeMax, Staples is strengthening its direct to consumer reach and the nature of stationery being sold is changing with the greater embrace of digital.
I had quoted for and been verbally given the order for packs of books for a private school this year but at the last minute they went to Office max. I asked them why they had gone out of town with the local parents money and they gave me another chance. I ended up giving them a really good deal throwing in a few freebbies and got the order. I learnt a lot from this. I think we could do a lot better with stationary if we could direct them to a much more user friendly better GNS webb page.
And carol the other aspect here is that OfficeMax has been helped grow in Australia by newsagents who buy from them.
Can’t comment on why newsagents are doing this. GNS need to look at why they are not purchasing from them and see where they can improve,
Carol, GNS is newsagent owned and if newsagents don’t support it then there is no hope.
Mark, only a few yrs ago you encouraged your marketing group members to use another stationery supplier instead of GNS when you were having trouble dealing with them. A bit of pot calling kettle black.
No, Luke. That marketing group explored a relationship but it did not proceed. It has had a solid relationship with GNS for five years.
Either way Mark. You have to provide what your customers want with easy access ie the Webb site. GNS need to look at what they need to do to keep their customers coming back. You can no longer rely on loyalty. Each business will buy where it is best for their business.
This has nothing to do with loyalty. GNS is run by Newsagents for Newsagents without them the deals you think you are obtaining from YOUR competition would not even be on offer for you. If GNS goes so does Stationery for Newsagents.
Newsagents have many millions of dollars invested in GNS. Every time they buy from Office Max or Staples (Corporate Express) they enrich businesses competing with newsagents.
Mark,
GNS have to improve the services they offer. If they want newsagents to compete then they have to invest in better online facilities across the board, fix ranging issues (including Sovereign), have better communication channels with newsagents and adapt to change at a quicker pace. At the moment any change appears to be unacceptably slow.
@Jarryd
We all need to continually improve and over the last 6 months I see GNS making inroads into these areas. Newsagents can compete right now GNS is not holding them back most Newsagents are just not active in there stationery lines.
GNS is owned by Newsagents some have some large sums tied up in the Business you can invest your Levy into GNS and grow your wealth with sales why would you not?
GNS need to lift their game. They are trying but it does take time to turn the monolith around.
I have a small corporate client who need three injet printers. So i go to the GNS website and convince my customer that the canon pixma mg5460 is the one for them at the pick-up price of $147.59. I say to my client i will charge them whatever it costs me so long as i keep their ink business. They like this and give me the thumbs up.
So i then go to the officeworks website out of interest and the same printer they are selling for $120.00.
Who should i buy from?
As i say, they are changing but they need to get their product mix and pricing a little more competative.
GNS are making good progress in improving their business. Some products they need to get right into or right out of, one of these being printers. The margins are too slim and the product has a short shelf life before a newer and cheaper model is available. Ink is another one they cant compete with at the moment, they need overnight delivery like Dynamic to make them a viable option with ink.
Yes Mark, you did and as a member of the group at the time we changed stationery accounts.
If I recall, you were upset that the marketing group owned by GNS was getting a better deal and freezing your group out ofGNS fairs, so members were asked to set up accounts with another supplier recommended by the group. Again pot/kettle/black
Luke, many years ago Newspower controlled equally by the associations and GNS was to be the only group permitted at the market fairs. The issue was resolved at that time. The arrangement to which you refer did not proceed.
GNS today is not what it was all those years ago. I am not stubbornly fixed on any one position.