The MPA wrote to the ACCC on May 28 to say the ACCC should ignore the submissions from newsXpress and to note it does not wish to disclose raw data from the trial. Click here to see the letter.
newsXpress has responded today. Click here to see the response.
In my letter to the ACCC is this passage discussing the role of the ANF. I share it here as the MPA relies on the fact that the ANF supports the trial of proposed magazine supply rules.
At the pre-decision conference in April, the ANF claimed a membership of 2,300. The majority of these members are indirect, they are members of other associations affiliated with the ANF. VANA and NANA, for example, have their own members who become ANF members by default.
It could be instructive for the ANF to provide the ACCC with a through understanding of its membership base, so the ACCC can see how many newsagents the ANF directly represents.
However, membership of the ANF is not at real issue here. The core ANF related issue is their consultation, or lack thereof.
While it is true the ANF supports the application, there is no evidence of consultation with newsagents by the ANF. We have put this position several times to the ANF and the ANF has not offered any evidence to the contrary. We are concerned that the ANF endorsed the trial and the supply rules at the heart of the trial without consultation with newsagents, making their endorsement defective.
Had the ANF consulted with newsagents, we suspect they would not have endorsed the application. Indeed, we expect that wide consultation with newsagents would have led the ANF to seek support from the MPA, Publishers Australia, other publishers and all magazine distributors for a root and branch review of the magazine supply model with the goal of removing barriers to the competitiveness of newsagents.
It is unfortunate the MPA is focussed solely on its proposed trial. As many newsagents have indicated, there are other options for addressing what the MPA seeks to address. I wish the MPA would consult with the newsagents who have engaged on this issue already as they are the newsagents fighting for magazines.
It would be a mistake to form a view that the newsagents who have responded are against magazines as only the contrary is true.
Hmm, so the ANF say’s it needs this trial to get the data it says it can’t get any other way BUT the MPA says its got no intention of releasing the data publicly. Also the ANF says the rules for future magazine supply will negotiated between the MPA,ACCC and the ANF yet the MPA is insistent the ACCC has nothing to do with regulating magazine supply. Unfortunately I believe the MPA.
On checking the Magazine Publishers Directory. It lists 102 publishers in Australia not sure how up to date this figure is.
But how can 3 publishers Brauer ,Pacific and News Ltd who make up the MPA impose their will on the rest of the industry
From XchangeIt web site.
XchangeIT is an industry initiative established by magazine distributors more than seven years ago. Our purpose is to reduce supply chain costs and we achieve this by resolving common data-related challenges in the newsagent channel. Currently almost 2,500 newsagents use our system each week.
From the National Newsagents mag June 2015.
Although XchangeIT draws data from newsagents, this data is not relied upon to determine supply quantities and therefore is not providing a solution”.
WTF who owns XchangeIT is it not the publishers. So if it is not doing what it was designed to do, or the way it should, why are we being charged to use a system that the ANF and publishers now say is not to their liking?
From what I have seen so far the ANF are only interested in one thing and that is the ANF.
Not sure if it has changed but the ANF has a share in XchangeIT or at least one of the XchangeIT entities – and a directorship.
This is a blatant attempt to transfer working capital out of the newsagency channel into the distributor/publisher channel and I cant believe the ANF is falling for it. The capital transfer strategy is well known in the Supermarket game but it works in reverse – the big retailers suck the capital up out of the suppliers supposedly to drive sales of their product.
I know this is about publishers not distributors but who in their right mind would sign a 10 year distribution contract in the current market environment – thats right – the same publishers that now want to do things better – give me a break. If they want to improve efficiencies and enhance sales and marketing opportunities, Id suggest they look at the inflexibility of the current distribution model and its associated practices (that they’ve just locked themselves back into).
Having said that, the entire model is under stress. From PMPs latest report, GG volumes down 6.5% in Aust, revenues down 11.8% and operating profit down 32.7% to $600k for the half year – and thats before GG (about one third of PMPs business) contributes to PMPs head office costs and interest bill that totals $8 Million for the same period.
Its a bizarre model to me where no one in the supply chain – publisher, distributor, retailer, can generate a return on their investment of capital and resources – and the ANF want to shift capital up the chain so the big fish can breathe a bit easier – even more bizarre.
Sigh………….
The only reason that only newXpress Newsagents in the main attended the ACCC video conference is that newsXpress engages with its members .
Besides this blog which is a open forum we the newXpress members are updated weekly and daily with all aspects of the industry.
Little wonder very few ANF members attended the video conference because if they don’t read this blog they would have no clue that
A/ They could attend
B/time and date as to when and where to attend
We now have a situation where Newsagents are trying to bring some equity into this important issue and we are up against well resourced organisations in the MPA and the ANF
After reading the MPAs letter to the ACCC I was left with the impression that the MPA is trying to tell the ACCC how to do their job
What is frustrating is that the goals the MPA states in its application to the ACCC could be met through proper use of the data newsagents diligently provide to the magazine distributors.
But there is the problem in my first sentence.
We provide our data, via XchangeIT, to the magazine distributors. The MPA three publishers, albeit the biggest in the country, butter out of 100+.
The problem is, I suspect, the distributors cannot supply based on our data because their contracts with publishers require them to ship what they are sent – regardless of what in known will sell.
And we are back to the mess and unfairness of the supply model to newsagents compared to our competitors.
I despair that we appear unable to have a adult conversation about this situation – in part because the body that says it represents newsagents itself refuses to openly engage on this most important of matters.
Mark,
I enjoy your blog and have come to realise that about 30% of your blog is superinformative and a must read for people involved in this industry. 50% is self promotion which is ok for the most part but sadly in some instances includes the denigration of our industry and the hard working people in it. And the last 20%, which is where this blog article resides, is utter shite (The Newsagency Bog).
The magazine supply issue ranks very highly among the most important issues in our industry. And you write your blog (on the most part) with an inference that you care for this industry, yet with this blog article and your recent actions you undermine this trial process, fragment our industry and continuously denigrate those participating.
This trial – this process undertaken in good faith by some key-stakeholders with the aim to improve a diabolical situation is now underway. We must have faith in it & them.
How about for once, stop the crap (that’s another newsagency bog pun) for a moment, and let the ANF look after themselves, let the newsagents involved in this trial who aren’t your mates so they must be morons – be morons, and let the publishers pull the 8 page fold-out centrefolds over all their eyes.
At the end, once the findings are found, and who knows – we all hope some good comes out of it – you can blog and bog to your hearts content.
Wow Darren, finally someone who wants to tell us how it is. Refreshing. Can’t wait to see the retorts. They will come fast and thick. We know how well Mark and his faithfuls handle criticism.
Ding ding ding round one
The problem though Darren is that there is not a lot of good faith left.
The MPA set up a trial according to their rules, without, it seems, any consultation. I trust the people in the trial to work in good faith. I don’t trust the publishers to not abuse that good faith afterwards.
Surely we can have a discussion about this without it becoming personal. I have spoken to the local ANF rep, who without i would not be a member of the ANF, but in this instance i think the ANF made a mistake.
Sure a trial might be good, but then also maybe run a trial that is designed by newsagents along side it. Then we might have something to compare too. Right now as i have previously said it seems like the major publishers are trying to get around and slip some things in the back door.
If i am wrong and my mistrust is not founded then excellent.
Anyway, there is my two cents worth (or five cents i guess these days)
I think the problem is that once the trial has been carried out then the horse has bolted and we’ll be locked into either the old antiquated and unfair system or a new outdated unfair system. Putting it simply:
We know the distributors don’t want to cut their distribution volume as it also cuts their profits so will the outcome of the MPA alter this ? I’d be very happy to take bets that it will not.
Secondly if the ANF was genuinely interested in representing its members why has it not gone to the ACCC previously and sort adjudication on the constant oversupply issue ?
Darren while you are an entitled to your view as anyone, you are not entitled to deny the facts. There is no evidence in recent posts nor the full body of posts by me to support your claim that 50% of my posts are self promotion.
This post includes a link to a letter fro the MPA and the newsxpress response to that letter. Following your logic either newsXpress should not have responded or I should not have published links to the letters here. I disagree with both positions, obviously.
I have written nothing here nor to the ACCC that undermines the trial process. Indeed, the trial has commenced, as you would know.
It is unfortunate you claim that disagreeing on a topic is fragmenting. It is not. healthy debate on any topic ought to be encouraged and welcomed, especially in our channel where lack of debate has failed newsagents for decades.
I do have mates involved in the trial for your information. I was invited early in the process over a year ago and declined.
Your casting of some newsagents as morons and other name-calling damages your commentary.
It’s surprises me that the publishers think that by letting the distributors continue to gouge both the publishers and retailers, that they think the retailers have the capacity to absorb more punishment. Here’s a tip we can’t and won’t, if this trail results in a system where early returns are no longer allowed, then I can see a very fast decline in newsagents stocking magazines, sad but true, they will just be an uneconomic proposition. Magazines outside the top 100 are marginal at best, more likely loss making. If I can’t turn a profit from mags I just won’t carry them. So I become a general retailer instead of a newsagent, so be it.
Darren, some make it happen some watch it happen and some don’t even know its happened.
Good on Mark Fletcher for trying to make things happen while the ANF sit back and watch it happen and the majority of it’s members, through poor communication, don’t even know what’s happening.
I hope that the MPA’s stated aim of reducing supply by 3% and reducing your capacity to control your business solves any oversupply issues you may be experiencing.
Mark, given that the ANF has not dealt with the oversupply of magazines for decades and will not in the future due to its sponsorship from the MPA, would it be in the best interests of the newsagency chanel as a whole, if newsXpress request the ACCC to undertake a thorough examination of the magazine supply chain for ALL channels, in a separate Application or request(by newsXpress), citing all the reasons that have been included in the Submissions provided already.
By doing this the Trial is irrelevant to any investigations by the ACCC and the ACCC does not have to rule on what information is relevant in considering the MPA Application.
All information can then be relevant in determining the uncompetitiveness and unfairness of the current supply model to newsagencies.
Darren who ever you are and co. Try posting any comments that the ANF don’t like on their web portal and it will be censored .At least on here everyone can have their say
The reason I proposed a debate with the ANF CEO was to provide a forum where newsagents can make up their own minds on the best approach on this issue. It is unfortunate the ANF refuses to provide newsagents this opportunity.
I have a newsagent near me in this trial and they told me yesterday that have someone to go to to make sure they are not oversupplied and that they can early return. I think this supports Mark’s point about the trial rules not being the rules being followed. This must surely question how the results are handled. Listing to this guy yesterday it sounds like it is being run badly.
With all this MPA negativity, good to see some positivity in the channel!
http://hubbed.com.au/singpost-invests-in-hubbed.html
http://www.singpost.com/download/FinancialNews/Announcements/2015/ann20150617.pdf
Aaron, not sure if you missed this positivity in the last couple of weeks:
http://www.newsagencyblog.com.au/2015/06/12/great-growth-story-from-a-regional-newsagency/
http://www.newsagencyblog.com.au/2015/06/12/thrilled-to-help-a-newsagency-save-28000-a-year/
http://www.newsagencyblog.com.au/2015/06/16/facebook-works-for-promoting-special-interest-magazines/
http://www.newsagencyblog.com.au/2015/06/17/jigsaw-puzzles-respond-to-promotion/
http://www.newsagencyblog.com.au/2015/03/04/optimism-among-newsagents/
Just thought a positive story about a multi million dollar deal is another positive to add to the great promos by NewsXpress. 🙂
Aaron only one of the links relates to a newsXpress specific post. Plenty of stories here about success for everyday newsagents. The deal to which you refer is a deal for a supplier not directly for newsagents.
Is Hubbed good for newsagents? I had a Hubbed rep in telling me that newsagents are in decline and they are our saviour! Whatever! Good newsagents are good retailers and have worked out that we do not need low profit traffic drivers as they do not work. There seems to be cloak and dagger explanations as to what Hubbed will provide me and this makes alarm bells ring big time. Maybe SingPost bought in because of how cheaply the retail channel is being paid and they see this as being good for their business? If it is working for you that’s great and I would love to hear good stories but they seem few and far between.
Give us a bell at the shop 07 4972 9711 & i’m happy to discuss. Not everything is always negative in the newsagent channel as Mark clearly shows. Though this forum on this topic is nothing but toxic.
A billionaire dollar company investing into a business within the channel is the most promising & exciting action I have seen in this channel since i started.
The problem is that 80% of newsagents are dinosaurs & have always been hand-feed products. The first approach is negativity or when they are given a product where they actual have to work to get customers , their true colours show….
The following comments, will clearly help you understand where I come from…. 🙂
Look forward to your call.
I think you are wrong Aaron. I would classify myself as not being a dinosaur (37 yr old). The issue is that lots of suppliers use newsagents to create gains for themselves (which is fair enough as it is business) with little benefit for newsagents. it is up to newsagents to wade through all of these to work out what is profitable. A parcel service which pays $1.10 per parcel is not profitable in my business and one I am not so interested in.
Negativity.. Straight away you assume your part of the 80%. Positivity & you would have been part of the 20%, now wouldn’t have you? 🙂
You asked a question in your first post, then proceeded to answer it… Are you still debating with yourself not to get a parcel service?
Ok sell it to me. How much does it cost you? How much do you make? How much time is involved? If it is great these should be easy for you to answer. Post it on the forum so you can sell it to those of us who are not sold on the product.
I am positive I will not be making $1 storing boxes, would rather make $50 selling gifts
From your previous comments you have made up your mind about this service & from those comments I could not recommend this service to you nor do I think this service would work in your shop.
When I was at the GNS expo & first seen Hubbed, my first questions unlike yours, was not about cost. I have always seen Hubbed as a future service & a must have in my shop. I guess Sing Post did to… 🙂
These are some questions I ask when I look at a product & or service;
– How much foot traffic will this service generate
– Will it steal customers from monopolies & or competitors
– Is there expansion in this service
– Do any close competitors offer a similar product or likely to
– Is my store first to market in this product in my area
– Is the brand of the product superior to others in the market trying the same or similar things
– Have competitors (monopolies) launched or launching a similar product
– Does this product give style to my shop
– If my competitors receive the product do they have foot traffic like my shop
– Can the product be profitable if marketed & managed correctly
Our shop is profitable from Hubbed because I have taken ownership of the product & marketed correctly.
Unfortunately, 80% of the people reading this will never achieve profitable / positive results & are better off watching Jurassic Park or being part of it…. 🙂
http://www.gladstonenews.com.au/pastissues/Issue367.pdf
Had Hubbed. Promoted it. Waste of time. I’d rather sell $200 gifts to people. And Arron I am not a dinosaur.
Had Hubbed. Had many problems with it.
Told them to come and get their equipment.
Hubbed changed the rules without consultation. When I contacted them about it, and made suggestions, they said that “this was what they had decided” End of discussion…
If a customer books a courier job with us, why should they have to stand around and wait 15-20 minutes before the con-note info is sent through to us?? Too slow!!
Well done Aaron, looks like you have been successful in implementing Hubbed.
I am surprised you do not find out how much something will cost you as that is part of any business plan.
I do like how you look for products that give you a point of difference.
Some of us have been in the newsagency industry for a few years (which is neither bad or good) but with time comes experience and we have experienced lots of businesses who want to use the newsagency channel to promote their products with promises of future glory only to leave newsagents carrying the cost of failure projects.
Foot traffic generators are the fools gold of the past so be careful using that as a basis for having a service/product.
I am still open about Hubbed even though you assume I am not. I just feel like the communication surrounding it is very hazy and this sends off alarm bells. This does not make me either 80% negative or 20% positive, just cautious.
Chris, you must have missed my last point;
“ Can the product be profitable if marketed & managed correctly “
This point is extremely important, but it puts the emphasis back on the owner to make their products & services successful. As I stated one of my biggest concerns is 80% channel can not implement a product they need to “hustle” to achieve succe$$.
I do total understand where your coming from, but the ‘newsagency channel’ is in a period of extraordinary change & I feel what we are seeing now is the norm if we haven’t yet hit the bottom.
The owners who are not pro-active, living in the past, dwelling on something that previously happened or have not joined a “successful group” for support & guidance will have a slow & painful death…
I use the word dinosaur because alot of the newsagents along with the word newsagent will be extinct in the near future. One of the abilities to success will to have products you can multitask with, adapt to digitalisation & have a “brand”.
The comment before about “I’d rather sell $200 gifts to people” is so typical. How about selling gifts online as well as “to people”. It’s easy to steal customers which are our demographic from Australia Post via Bpay because their sick of being cattle in a cue… These new excited customer given great customer service may even buy another product..
Having a service that allows you to compete with monopolies while achieving a new customer base is a must have for our shop. Wouldn’t it be logical then to use a service that supports our channel to send gifts, stationery, etc, if you could achieve an online presents… Interesting…
How about Ebay, Gumtree, business customers in your area. Who do you think their using? Ebay is only 1 or 2 people kicking it on a website…
Like any new product & service Hubbed isn’t perfect. They are continually improving & adapting to their competition & providing a more efficient service. Remember their not going against guppies here.. But now they have a big-fish supporting them the future is bright. Just look at Office Work’s new service, their TV campaign & you will understand where I’m coming from.
Why do you think I finished my first comment with “The following comments, will clearly help you understand where I come from”…. This style of service / product isn’t for everyone, hence the “interesting” replies…
I know Jim’s business and he is attracting new traffic with the high margin items. he is doing this primarily online. In doing so he is capturing customers who would otherwise be lost to a newsagency.
There is more to many points than what is written sometimes if you think it through.