News Corp. in Victoria sent this letter to Victorian newsagents yesterday:
2016 Official ANZAC Coin Collection – ANZAC to Afghanistan
Dear Newsagents/Distributors,
We would like to thank distributors & newsagents for the great job that they have done with the launch of the ANZAC Coin promotion. Early feedback indicates that it should be another great success in both the increase in paper sales, as well as sales of the coins.
Disappointingly, we have also received feedback that there are full sets of the coins being offered for sale on eBay and Gumtree. The online ads feature photos of the full sets alongside images of posters distributed for promotional use in newsagent stores.
A requirement for retailers and newsagents to participate in this promotion, is that the coins can only be sold with a token from the paper and cannot be sold separately or in advance. This is critical in achieving the primary objective of the promotion, to increase newspaper sales.
Where we have identified the parties involved in the unauthorised sale of the coins online, we have taken appropriate action. It should be clearly understood that any contracted party involved in the unauthorised sale of the ANZAC Coins risks action being taken under the terms of our contract.
We acknowledge that this issue relates to a minority of outlets and thank you for your support in this matter.
Kind Regards,
Circulation Team News Victoria
While I would have liked this communication to be in the market sooner, that they have sent it is good and appreciated.
Maybe we could start a conversation here about News Corp’s inability to sensibly boost supplies when they run a promotion? And the fact that iServices is completely useless and doesn’t do its job?
Im confused with this part ..
A requirement for retailers and newsagents to participate in this promotion, is that the coins can only be sold with a token from the paper and cannot be sold separately or in advance. This is critical in achieving the primary objective of the promotion, to increase newspaper sales.
WEL WHAT are you supposed to do when you have no stock to sell with the coins . Sunday sold out of papers by 9am .
Perhaps if newsagents got a fair and reasonable remuneration for participating in these promotions they would take more care in enforcing the terms and conditions.
I know plenty of newsagents in WA who do not even bother with these any more because they are more hassle than the 7.5% we get for them is worth.
News Ltd – If you want us to engage fully then remunerate us fairly rather than just using us. Until then you get what you pay for.
Newscorp know damn well that no matter how much some of us may hate these promotions and the paltry commisions we get we will still do it. Why? Because newscorp advertises it widely as available at newsagents, customer expect us to have it and we dont seem to have any choice in getting it. I tell you what though as newspaper circulation declines and the regularity of these promotions increases theres a crunch point not too far away. Ever get the feeling your being used?
I agree Glenn. that’s precisely the reason I don’t do them any more. If everyone refused to do them they would have no option but to increase the margin on them to something realistic. (30% sounds about right to me) Coles don’t want them when they have them (last promo one of the Coles staff told me they didn’t even bother to put some days items out for their staff to sell) .
These promos are a pain in the arse, (and hip pocket) and only increase paper sales while they are on. News ltd have no idea how to build sales, they should look at the experts, dare I suggest newsagents have some idea about this subject!!! Probably to late as most newsagents have realised that newspapers are almost irrelevant in our businesses today, primarily because of the way News have treated us. Yes we still do them, and yes we still put them away for customers (small town so it’s customer service, but expensive) but we do not promote it or order in extra stock and don’t push it, and we certainly don’t bother with cutting out coupons lol, in fact some customers don’t even have a coupon but are good customers in other departments, so newspaper sales don’t really come into,it. Hope Rupert doesn’t read this blog.
Can’t say I agree with much that has been written about this News Corp ANZAC Coin promotion. From my experience the local publisher here in SA has/is doing a great job.
Newspaper supply for me has not been an issue. The NewsCorp team in Adelaide has been working hard to move coins around in an environment where mostly demand is outstripping supply in respect of the coins.
Sounds like some of the interstate NewsCorp crews could learn a thing or two from their Adelaide counterparts.
Dennis,
Sure they could new tricks from SA. Forgetting to print the coupon in a recent promotion was an absolute classic.
I’m sure I will get a few disagreeing with me on this post particularly those with distribution rounds only
I will point out that I have a retail shop and a Distribution round.
There have been a number of retail Newsagents complaining the margin the receive and the work involved for News Ltd promotions and I have to say I agree
The problem for News Ltd is some Newsagents have already dropped these promotions and others may well follow. Will OTR or the supermarkets run ALL the promotions we do for so little reward I doubt it.
The issue I have is the 50/50 split in commission for the distribution agent and the retailer.
This split in commission does not provide adequate remuneration for the work he has to do.
Yes I know the Distribution has to bundle up the product for his various outlets then deliver and collect returns, But this is no where near the work a retailer has to do, including dealing with abusive customers.
Until News Ltd pull their both feet out of the past and start treating retailers as retailers NOT sub agents nothing will change.
Mark R, the issue is not that the delivery agent has to do more than the retailer, the issue is that News does not provide enough total margin to be shared. As retail only i am more than happy to go 50/50 with my distribution agent, as he does run around for me sourcing extra stock and doing his best to make sure i get as best supply as i possibly can to satisfy my customer demand. I need his services and he should also be remunerated for that.
What News should do is make the coins $4 each and give the retailer and distributor an extra $0.50ea. Then it is worth our while to put the time and effort into getting the most out of this promo for News and respecting what they do to bring it to us.
Under the current scheme i don’t give a rats – nor can i afford to – about the terms. You want coins then i give them to you in a set and you pay. I have to only deal with the customer once rather than 7 times in a week for the same return, and the customer does not need to come in each day just for a coin.
I would love to work with News to grow sales over these promotions, but their terms make impossible to work on as they would like and generate a positive return.
Im a subagent , I get a direct supply from news limited at the subagent rate . news limited do the deliveries , I do my own returns on line but yet the newsagent down the road get my other half of the commission . The whole system is out of date
Glenn its the other way around the retailer has far more work to do for the same commission
If a retailer sells 80 coin “packs” that’s 1,120 over the counter transactions for a meager 31.6c ex GST
My point is News Ltd do not see the inconsistencies. News Ltd are stuck in the past
This is a RETAIL promotion and retailers are not adequately compensated .
Agree Mark R, and this goes for all products, not just the promo’s. On top of the work load retailers have is the issue of theft of mags and papers which the retailers bear, not the distributor.
Mark, that the promotion requires 1,120 OTC transactions to sell 80 sets – and we get 20.5c ex GST per coin – is exactly why there is a compliance issue and newsagents are selling them in bundles.
Much better to sell in a set, where we get down to 80 transactions and make a roaring $2.62 on the entire transaction.
Whatever way we do it, ultimately these promotions are not worth doing for any retailer.
We won’t hold any newscorp promo for customers.
If we start for one customer, then we would end up with 100 piles of coins and newspapers for the fortnight and we obviously don’t have the room.
Newscorp touts the aim of the promotions is to get people instore, which putaways restrict as well(we know there are very few add ons but newscorp are deaf to that anyway).
We are here as a retail outlet now, not a service to the community and newscorp.
Promotion over, posters down, few coins left. Saw lots of new customers, but mostly for coins only. How much on Ebay now ?