Of the five newsagents / lottery agents who told me last week they were closing, three claimed the cost of the Tatts refit requirement was a key factor.
While I think the retailers should have long ago made their businesses sustainable without lotteries, tatts does play a role by demanding small business retailers over capitalise to maintain Tatts products in the b business in a market where punters are clearly migrating online and where other retailers, such as supermarkets and On The Run in SA are not required to make the same investment.
As I have written here many times before, creating a business that does not rely on lotteries is hard work but it is also wonderfully rewarding … and you evolve into a better retailer.
Have a look on twitter at the new lotto set up at Westfield Chermside
https://twitter.com/tatts_group?lang=en
How much would that cost and who would pay for that?
That is a massive allocation of space for Tatts advertising. I would hope they are paying a weekly rental for the space…..
Ain’t going to happen here.
While have not seen this shop, if the screens remain solely used for tatts it will prove to be a mistake. There is no upside for in-store lottery purchases.
In the Photo it is essentially a Lotto shop with then other stock as an adjunct to Lotto.
Having received only a couple of overpriced quotes on our refit from the many invites to quote that were sent we feel rather helpless at how to deal with this situation. Seven years ago we were told that the refit when due would only be in the 5-10 thousand range. Has blown out just a smidge. Have we no recourse on this matter?
There is no doubt that the $10,000 rebate from the NSW government is added onto the price of these shop fits. Funny how all the quotes are within 5-10 per cent of each other. No collusion of course.
Peter it depends on your location. If this was me, based in Victoria, Id agitate through VCAT.
Thanks Mark. I am in Qld and have ploughed through the QCAT website but could not find an applicable area to tackle except maybe suppliers of services and providers.
QCAT, that is where I would start.http://www.qcat.qld.gov.au I’d also make the QLD Small business Champion aware even though it is not clearing in their jurisdiction: SmallBusiness.Champion@dtesb.qld.gov.au.
I don’t think you can do the trader dispute through QCAT as they only hear cases with a value of up to $25K I thought and most of these lotto refits are above that.
Peter one option may be to approach one of the big law firms that does class actions. IF they deem there is enough of a chance of a win they may look to get an action up and going and funded by litigation fund backers. Would also get more newsagents potentially involved and possibly some sort of satisfactory result. Lots of big IFs but I may be involved in one shortly with an even bigger entity than Tatts so it shows nothing is impossible.
Paul S ,I think it might be a tad bit late , I know we are due for our refit in November and from what I hear we are some of the last to be done . So for anyone thinking of going to court I feel that lotto termonals would have been turned off before anything could be done . Dont get me wrong I love the idea but I just think we have run out of time .
ShaunS, where are you located. If you are in NSW there is only a small percentage that have the new digipos from my estimation. Tatts have said I do not need a refit for a few years but I have already consulted my lawyer to look through my contract and see what avenues I have to A)reject the upgrade or b)use my own shopfitter. I am not going to swear but f#*k Tatts, I am not going to be dictated to by a 3rd party on how I spend my money on growth for the store. Imagine the interactive creations or online presence related to high GP products you could have in your store for $30k!
My argument is that Tatts should support the stores that are transitioning from newsagents to retailers because the businesses reliant on agency income won’t be here in 10 years. The stores that have transitioned will not want Tatts unless they improve their relationship skills.
Shauns, Think you may be right as Lotteries Agents Qld charter is to protect Newsagencies in the Golden Casket dealings. We have never been approached to join and we have not because we were stitched up on the new commission deal with the delay after the internet commission was snipped. You have to admire Robbie Cooke as he screwed Qld Racing wasted money on renovating TAB outlets and now we are the only ones left to screw. We are in a tough place at the moment Tabcorp takeover or not.
Chris , qld