Traffic in newsagencies for the first part of the Disney book promotion supporting News Corp. newspapers was down on previous promotions according to newsagents who have contacted me. They say the availability of the books in supermarkets slowed newsagent traffic.
While it is too early for an assessment, my own experience is that for part one there was not the frantic rush we have seen in the past. I’m not concerned about as shoppers purchasing a newspaper elsewhere and coming to us for their freebie or subsequent low-cost parts were not commercially valuable. Indeed, some were angry that we had somehow forced them to walk the extra distance to our shop.
Disappointing, plenty of everything except sales!
Definitely stopped my sales. I always sell out of each day on the day and I have
buckets over and customers saying “thank goodness you still have some – coles have sold out” Then they also have the audacity to ask if we will keep them each day for them!!!!!!!!!!!!!!
Can’t tell you the reply I would like to give.
If we didn’t know better we would think that Coles/Woolies are demanding the same access to promos and are getting it.
Even worse is that newsagents are the only ones who have to deal with HD customers because Coles/Woolies won’t.
Have to agree June and Jenny,
Paper sale have been good but people just do not seem interested in this promo.
June, I had one person in this morning telling me how she had bought a DT at Woolies (some 20k away) and they had run out of the book/cd.
I was not in the mood so I told them straight, you buy the DT from me and you may purchase to promo from me. Buy at Woolies I will not sell to you as this promo is about building retail sales. MY RETAIL SALES not Woolies or Coles.
I’m sure that the two majors are only involved so as not to loose paper sales. My local woollies and coles – 1. didn’t know about the promo on Saturday morning (only had 20 units anyway) and 2 only have 10 units each day…. Something that as a newsagent we do well has been undermined by both our competitors and helpfully by our “partner” supplier. great hey!
Sent an email to News Ltd (Advertiser) this morning about the 12.5% and said
the eastern seaboard gets 15% so why don’t we get the same and the answer was that the 15% was divided between
the distribution agent and the retailer which meant 7.5% each.
Any verification on that???
I think it should be the same state on state as the work effort to handle it is the same in every state.
June,
Distribution agents get 15%, of which they give 7.5% to retail agents. If you are getting 12.5% from your distribution agent then they are giving you more than they need to, and I would keep quiet and hope they don’t realise.
I am a distribution and retail agent and I get 15%. If I was only getting 7.5% I would not be doing the promotion as I am upset that I only get 15%, it is not enough. I do it because results show that when customers come and buy these books they will also buy their Valentine’s Day cards due to placing the Tele promotion next to this season. If I was not getting incremental sales I would not do these promotions. As for the Coles/Woolies thing, if a customer comes in saying that Coles had sold out I will sell them the book. The only person losing out is you if you knock back the sale. Customers do not understand the ins and outs of your business and honestly do not care. All you will do is give the impression that you do not want their business. Try to see it from the customer side.
Chris I would also sell the book to the supermarket buyers if I had enough stock. I have now sold out of DT and have 4 books left, these will go later in the week because we always have people come in asking for the weeks worth, from home deliveries.
But really it has had minimal effect to my sales of the DT. Actually all our paper sales are up today.
Customers are not stupid and this is the second promo starting at the same time as price rise for the DT. These promo have always been $2.00 now we have a price rise and a promo costing $2.50 for the second time in 6 months, people see no value (repeat from several customers).
The biggest promo year after year has been the Australia Day hat which was not done this year, but if there was a promo and price rise this would have been the ideal promo for us.
Chris, I thought the only reason for the promo was for incremental sales and therefore I am fairly rigid about the coupon.
Every now and then I might let one go at the end of the campaign when someone has missed one but daily I am fair to News Ltd who are not doing this for the income from the books but rather to put
the paper (print) in front of the customer.
I get what you are saying about the customers not knowing (or caring) about how the business works though!!!
Dean, I rang my distribution agent and confirmed the 12.5%.
June your distribution agent is either getting 10% more commission than the rest of us or he’s very generous to his subs.
Or not very smart 🙂
June,
This means that your distribution agent is leaving 2.5% for himself. He is losing money after paying for wages and other costs associated with this promotion.
First time I can recall having boxes of part one left at the end of the second day.
Massive mistake leading with Frozen, will cost them heaps.
I back going out with Frozen as it gets people started. I’m more interested to see how it plays out between newsagents and supermarkets.
@ Dean – IIRC June is in SA, as am I. The commission here is 25% split 50/50. Seems you are getting a rough deal.
June, News Ltd may want incremental sales but they do not dictate terms to me and they shouldn’t to you! I make the decisions in my business, not a supplier. News Ltd make a mozza from these promotions or they would not do them. Imagine how much these cost each (close to nothing) and calculate the profit over the whole distribution.
I get the impression a lot of Newsagents let suppliers make decisions on how they run their business. Stuff like no early returns, sending and paying for full copy oversupply returns, following supplier sales conditions etc etc.. I get the feeling a lot of Newsagents need help or maybe not help but just need to be drilled into them that they own the business, no one else, they own the business! No one else can make decisions on how you run your business. I have had many reps, suppliers “suggest” how I sell their product. I take their advice and sometimes I use it and other times I don’t but it comes down to what I think will work for my business. Suppliers want you to do it their way so it works for their products.
Be empowered people, these are your businesses and you can shape them anyway you like if you feel that will drive you to success.
I agree Chris. It’s why I saw we have to own our own situation. Personal accountability!
Interesting reading. The Newsagent in the next town has given up his Nationwide and Fairfax contracts and I now supply him. He did not want the promo which worked out well as we were only sent 20 copies of each. When I rang they refused to up the supply. I now run out by 9am every morning of the promo. While I’m at it, whoever is responsible for placing the coupons needs a kick in the ass, this morning its dead set centre of the front page story.
PeterS , maybe Nationwide news reduced your supply so they could supply Coles
heaps,
have you seen the great dump bin display
stand , Coles have for the promo ?
This is the reality of the situation in my area:
* Woolworths selling books without customer needing to buy newspaper.
* Woolworths selling books in advance of the so-called “day of release”. That is, customers asking if they can buy books 1-5 and being able to.
* my staff getting abused for making customers purchase newspaper with book.
Result – no longer support such programs.
Amanda,
Same here. We have stock left as Woolies has too much and don’t follow the rules. Well done NewsCorp, no extra sales, more people off to the supermarket.
Amanda I expect News Corp. to review as a result of complaints like this.
Have complained to my rep about Coles petrol selling without coupon but I don’t think anyone really cares.
Peters we stamp coupons and leave them in the paper rather than ripping or cutting them out. I have not sent coupons back for years, I expect to be trusted to do the right thing.
Have complained to my rep about Coles petrol selling without coupon but I don’t think anyone really cares.
Peters we stamp coupons and leave them in the paper rather than ripping or cutting them out. I have not sent coupons back for years, I expect to be trusted to do the right thing.
Over in Woolies this afternoon. Came across a very impressive cardboard stand for the Disney promo. Even had a “Woolworths” branded base. There must have been a fair bit of colaberation between News and Woolies to produce this. Can only suspect News paid for the stand. No paper stand near the display.
Needless to say I have already emailed local rep that we will not be participating in future promos.
There will be no review Mark. As much as I wold like to think they would review it, I know from experience they don’t care.
Have complained about this for 4years. Like your comment under article on “News Corp screws up newspaper price change” , this sort of thing would not have happened a few years ago.
Thats is why we stopped participating last year. The promotion instead of being an attraction was only causing anger and frustration… for us and customers….all for a total of about $50 profit at the end of it all.
As this is the first time nationally they are in newsagents and supermarkets I expect there will be a review.
They have been in supermarkets, Big W and petrol outlets before Mark.
I think the last promo, cookbooks? was newsagent only.
This could be the first nationally.
we have been dictated to by News Ltd for this promotion and ordered to clip out a coupon for every sale ie. must have yesterday’s token for yesterday’s book & cd. Unworkable and upsetting for customers and staff. especially bad when the coupon is in the middle of the page and e have to cut out half a story from the paper – idiots! previously if they bought a paper it was ok to sell the promo but not this time.