A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Author: Mark Fletcher

Is the UK campaign against The Sun influencing campaigns here?

The campaign in the UK against the Murdoch owned The Sun newspaper is legendary, with plenty of newsagents being public about their refusal to stock the title. Given this tweet in the lead up to the Queensland state election I wonder if about the traction  for a similar campaign here.

Australians are no longer influenced by @rupertmurdoch propaganda rags and will continue to #BoycottMurdochMedia every day. I actually saw a sign up in a newsagents window saying “We don’t sell Murdoch’s propaganda rags here” 😂 I Love democracy #QLDvotes #Auspol #insiders #qt

There is the question of the role of the newsagent as censor and there is the question of the role of any newspaper in engaging in an overt political campaign to serve it s own interests as we have seen in recent years in Australia.

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Ethics

Carte Blanche closing in Australia

After a review of its Australian business, UK card company Carte Blanche is closing its Australian branch. My understanding is staff finish up this week, someone told me it is today. Simson is taking on the card range and Jasnor is taking on the plush range.

I have not seen communication from Carte Blanche so I do not know the arrangements for returns.

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Greeting Cards

The challenge of launching a new magazine in Australian newsagencies

The days of newsagents allocating a third of their retail floor space are long gone, and with that the space to easily accomodate new titles.

Today, magazine space is tight, usually taking 20% and less of floor space, often floor space that is less prime than the magazine bays of years ago. Whereas in the past the volume of stock received managed newsagents, today newsagents are far more protective of their assets, as they should be.

With the scale back of space allocation for magazines is the almost elimination of power end displays promoting magazines. They don’t provide the financial return necessary in Australia’s high retail space and labour cost climate – when you compare the cost of retail space and labour to other developed countries.

I consider any new title on the basis of what it can bring to my business, like I do for any product. While adding a new magazine that leeches off existing traffic is okay, it is not as beneficial as the magazine that helps attract new shoppers.

This is on my mind today because Lovatts Media has launched Teen Breathe. I have read the material and while I appreciate 30% gross profit compares to the usual 25%, there is nothing indicating what adding this product to my business will do to grow the business. What is offensive is that the 30% is tied to newsagents not early returning the title. That is, an extra 49.75 cents per copy sold, but only if we hold the title in-store for two months. This is disrespectful. It is of no interest to me.

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magazine distribution

RETAIL NEWSAGENCY SALES BENCHMARK RESULTS: New product categories key to helping newsagents overcome collapsing magazine, newspaper and stationery sales.

RETAIL NEWSAGENCY SALES BENCHMARK: JULY – SEPTEMBER 2017 vs. 2016

New product categories key to helping newsagents overcome collapsing magazine, newspaper and stationery sales.

The July – September quarter continued the tough year for traditional products in Australian newsagency businesses.

The gap between businesses enjoying success and those challenged increased.

The traditional newsagency has no future. That is, the business with newspapers, magazines, lotteries, stationery and cards. Quarter after quarter, the performance on those businesses continues the trajectory of declining traffic and revenue, which can only end in closure.

At the other end, businesses that have diversified into products that are not traditional in range and price point for newsagencies are more likely to (but not always) find success.

Business closures.

Before I get into the benchmark results, I want to address another data point, store closures. It looks like 2017 will end with between 400 and 450 newsagency business closures. The number is difficult to tie down given there is no one place all newsagencies are registered.

The question is: – is this rock bottom, is the closure number for 2017 the worst we will see? Only time will tell. I suspect 2018 will be an equally tough year. I say this based on the number of newsagency business owners who refuse to dramatically alter the course of their businesses, expecting traditional suppliers to bring the change necessary to turn the business around.

The reasons for closure vary from financial trouble to lease costs to retirement to in ability to sell and no will to keep running the business.

Business performance data do not lie. The best performing businesses in the newsagency channel, which includes businesses some would no longer call newsagencies, are those trading away from traditional categories. These businesses still have some of the traditional categories but they do not rely on them at the core of their businesses.

Business closures can be avoided, if there is will, early will, on the part of the business owners. There are plenty in the channel who can provide real help. The key is to ask.

Benchmark headline numbers.

Here are the headline numbers by key product category:

  • Magazine unit sales declined 13.5%.
  • Greeting card revenue declined 4%.
  • Lottery revenue declined 2%.
  • Newspaper unit sales declined 12%.
  • Gift revenue increased by 13%.
  • Toy revenue increased by 12%.
  • Plush revenue increased by 14%.
  • Stationery revenue declined 11%.

The above percentages reflect the overall performance of the 173 newsagency businesses in this benchmark study. It includes stores from a range of banner groups as well as independents. There are large businesses and small. Some are in shopping centres while others are on then high street.

What is concerning is the pace of decline of what were once core traffic generation – magazines and newspapers.

Newsagency businesses that are not engaged with a net new traffic strategy are heading for trouble.

Newsagents need to manage the overhead cost of newspapers and magazines. Labour, space and capital investment must reflect the gross profit contribution of these categories.

Stationery was a challenge this quarter. Looking more closely at the data, it is the higher volume business, OfficeSmart type volume business, where there are challenges.

That card performance this quarter matches the previous quarter is a concern. Looking at stores reporting growth, one factor is how cards are managed – active management by the business, as opposed to the card suppliers, is key. The card department is no longer a department we can expect to work without management support.

GOOD NEWS.

Yes, there is good news.

  • One store achieved $58,000 in everyday and higher end plush sales in the quarter, up 20% from the same quarter a year back.
  • A suburban store grew plush to $17,000 in the quarter, up 30% on 2017.
  • A regional high street store grew gifts to $38,000 in the quarter, up 22% on 2016.
  • A small country town business entered toys earlier this year and in the July – September quarter tracked $4,900 in sales in a category in which they had no presence a year earlier.
  • A suburban newsagency entered the games category this year and booked more than $8,000 in revenue from games in the September quarter. That is 100% new business.
  • Plenty of businesses reported gift revenue growth of 20% or more. These are city and country businesses, high street and centre.

Looking more closely at the businesses enjoying growth, it comes from hard work in the business, relentless hard work.

OVERALL PERFORMANCE DATA.

  • Customer traffic. 75% of newsagents report average decline of 6%.
  • Overall sales. 59% reported an average revenue decline of 3%.
  • Basket depth. 66% report a 2.5% decrease in basket size.
  • Basket dollar value. 62% report a decrease in basket value of 3%.

It is in the overall business gross profit numbers where the differences in businesses can be seen. Of this latest dataset: 64% sit in the traditional newsagency GP performance band of 28% – 30%. 7% sit below 28%. 20% sit in the GP band of 30% and 35%. 7% sit between 35% and 40%. The rest, 2%, have a GP of more than 40%.

GP is a function of what you stock and the type of shoppers you attract to the business. Buying is where it starts.

WHAT IS DRIVING THE DECLINES?

I think the traffic decline is being driven by a decline in interest in legacy products on which traditional newsagency businesses have relied. I have said for years it is crucial newsagents have a strategy to drive net new traffic. Relying on legacy product to sell new products is not a plan. You need to source new products and to use these to attract people to your business who would otherwise not have shopped with you.

We can grow sales of legacy products by bringing people into our businesses from other reasons. Once in-store some will buy papers and magazines.

HOW TO RESPOND TO TRAFFIC DECLINES?

Any newsagency business can be successful, regardless of location and situation. This is truer today than at any time in the past thanks to what we can see being achieved online – not only in newsagency businesses but through other retail channels.

The key to success is to not run the business as a newsagency. That’s is, to not obsess about legacy products. Focus on new traffic products. Focus on price points you would usually say would never work in your business. Buy products you think will never work. Be radical and through discover what is possible in your business.

I urge you to ask yourself daily, what have I done today to reach a new shopper, someone who does not know we exist? This is what successful businesses in the benchmark study are doing and doing well.

DOES THE NEWSAGENCY CHANNEL HAVE A FUTURE?

I ask this every quarter. My answer has changed – not in the form Australians identify as a newsagency.

AGENCY IS OVER.

There is no upside in any agency parts of the business. People saying they are proud to be called a newsagent are entitled to their view. History will show that era is behind us.

OPTIMISTIC.

I am optimistic for my own businesses and for the businesses of many newsagents.

WHY I DO THIS STUDY

My interest in the study is as a newsagent and as a supplier to the channel through Tower Systems and through newsXpress. I want the channel to grow for selfish reasons and because it has been my life since 1981. I am invested.

BENCHMARK GOALS

I am often asked for benchmark goals newsagents ought to aim for. Here are some benchmarks I have developed in my work with newsXpress and through Tower Systems:

  1. Gross profit: this is the goal gross profit for all product sales not taking into account any revenue or costs related to any agency business. The traditional newsagency average sits at 28% to 32%. For a newsagency focused on the future, the goal has to be at least 45%.
  1. Ratio of Gift revenue to Card revenue: 50% minimum. The goal ought to be 100% or more. If you do $100K a year in cards, target to do $100K in gifts, or more.
  2. Revenue per employee – $250 an hour minimum not including agency revenue. This is a contentious KPI. If you think it is not for you, work the numbers back and see what your number needs to be based on each labour hour in the business.
  3. Revenue PSQM $4,500 – $8,500 depending on country vs. city / high street to shopping centre and depending of product mix. Higher GP lower revenue required.
  4. Overall revenue mix percentage targets: Cards: 25%; Gifts/toys/plush: 25%; Stat: 10%; magazines/newspapers: 20%; other: 15%.
  5. FLOORSPACE ALLOCATION: Cards: 25%; Gifts/toys/plush: 25%; Stat: 8%; magazines/newspapers: 15%; other products: 15%; office/back room / counter: 12%. It’s rare you make money from an office or store room.
  6. Mark-up goals: Stationery: 125%; Gifts 110%; plush: 110%.
  7. Occupancy cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Location and situation are a big factor in this benchmark. For example, a large shopping centre business will have a higher cost than a high street situation.
  8. Labour cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Labour cost should include fair market costs for all who work in the business. (See above).

 

Mark Fletcher.
Email: mark@towersystems.com.au  Website: www.towersystems.com.au

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Newsagency benchmark

Beware social media consultants

A small business retailer told me last week they were paying a social media consultant $500 a month for Facebook and Instagram posts. The agreement called for two posts a week. The consultant overdelivered with there to each platform a week.

Six months in to the agreement and the retailer was concerned as they were not seeing any result in revenue.

While the likes for posts were good and likes for the business Facebook page had grown considerably, there was no tangible benefit, no new faces, no in-store mentions of the posts.

In my opinion, social media posts are best if they come from within the business, are simple, entertaining and serve to pitch the business against whats people would assume the business to offer.

Paying a consultant to write posts is dead money as no one can speak for your business sin such an immediate and interactive platform as you and those who work in the business with you.

It is easy to spot social media posts by an agency or social media consultant. It is overthought, often bland, smelling commercial and, usually, overwritten.

Social media consultants can make a strong pitch, helping you with something you may not understand, making it seem easy, coming across as the expert, winning you over with marketing charm.

When it comes to small business social media engagement, the experts are those in small businesses doing it successfully, doing it with a direct revenue benefit. While there may be some consultants achieving this, I am skeptical there would be many.

Sure it is an extra task to complete. The thing is, in today’s world, it is probably the single most important marketing task for the business.

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marketing

Newsagency marketing tip: control how people see your business

You control how prospective customers see your business. This matters if you want to attract people who are not looking for what they think a newsagency is.

Your front window, social media posts, advertising (if you do any) … in fact, anything you write, say or do outside your business that can reflect on your business determines how people see your business.

If you are concerned people think of your business as traditional newsagency, you know you do not have your messaging right.

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marketing

Checking out Lottoland syndicates

With Lottoland no longer selling bets on the numbers drawn for  Australian lottery games, I expect it will intensify its marketing of bets on overseas lotteries.  One focus I think we will see is more of is their syndicates. They have a comprehensive offer.

Check out the syndicates page on their website. It offers plenty of syndicates. Their packaging and marketing is clever. It is competitive against the way syndicates are handled for Australian lotteries.

Understanding a competitor is a important step in successfully competing. This is why I suggest newsagents who sell lottery products thoroughly research the Lottoland pitch, including their syndicators pitch.

I don’t see Lottoland retreating from Australia in the short to medium term. It wouldn’t surprise me if we heard more from them, not less … along with all the others players now in this online lottery relates space.

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Competition

Lotterywest fails to meet GS1 barcode standard

Lotterywest has released new Lotto Terminals that print Price Embedded Barcodes (PEB), like Tatts. 

These barcodes do not meet GS1 Price Embedded Barcode Standards. This means they will not scan like the Tatts Lotto Tickets and put in the price automatically. This only effects West Australian sites who have these new terminals and want to scan their lotto tickets. 

Experts at my newsagency software company have looked at the barcodes on the Lotterywest tickets and confirm they do not meet GS1 Price Embedded Barcode Standards. Tower has sent information on Price Embedded Barcodes to Lottertwest many times.

The actual problem is the prefix of the barcodes. “51” is not a standard prefix for a PEB hence they don’t scan as a PEB but rather as a product.

Hey Lotterywest – this is not rocket science. Your organisation requires retailers to follow standards. You should do this yourselves.

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Lotteries

ACCC decides to not oppose acquisition of OfficeMax by Platinum Equity

Platinum Equity owns Winc. Winc is what Staples is now called in Australia. Staples took over Corporate Express earlier this decade.

The proposed takeover strengthens Winc against its competitors, which include hundreds of small business retailers in the stationery space.

The ACCC announced yesterday that it will not oppose the takeover.

The ACCC will not oppose the proposed acquisition of OfficeMax Australia (OfficeMax) by Platinum Equity.

Platinum Equity owns Winc (formerly Staples Australia). Winc and OfficeMax both supply office products to commercial and government customers in Australia.

“Following extensive market inquiries and analysis of documents and data, the ACCC has decided not to oppose this transaction. The ACCC believes the transaction will lessen competition but doesn’t reach the threshold of causing a substantial lessening of competition,” ACCC Chairman Rod Sims said.

“Any deal that sees the largest supplier acquiring the second largest in a market will require very close scrutiny. However, in a finely balanced decision the ACCC found that a combined Winc-OfficeMax would continue to face competition from the remaining key suppliers, Complete Office Supplies (COS) and Lyreco.”

The consolidation we are seeing in Australia in the stationery and office products space follows similar consolidation in the US in the office products space.

This Platinum Equity takeover of OfficeMax challenges newsagents to address undercapitalisation, inefficiencies and uncompetitiveness in its older stationery wholesale businesses such as GNS nationally and Ancol in South Australia.

GNS has already moved in part through the goal of broadening its shareholder base. But that move is not enough.

In my opinion, the proposed move by GNS is too small, and probably too late. Given the inaction by the GNS board on structural matters for the last ten years or so, more bold action is needed to catch up and facilitate greater competitiveness for newsagents.

To confront the challenge of a bigger Winc and to provide newsagents with better buying, GNS needs to tap into something much bigger than its small business owned Australia only operation.

I think Ancol should have closed years ago. The South Australian marketplace is too small for it to supply newsagents on competitive terms.

If Winc moves into retail, as some who watch the space think it will, the competitive challenge to newsagents will be greater as it will be on show, for us to see.

What many do not see today is the reach by Winc online for stationery for small business and even home use. Theirs is an extraordinary business, leverage excellent early work by Corporate Express and building on that in recent years to provide fast delivery oil office products at competitive prices. This is what has hurt newsagency stationery sales the most. This is where GNS is most challenged.

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Newsagency management

I was wrong about Gotch, they don’t care about newsagents

In my post last week about the missteps by XchangeIT and Gotch on the data handling for the new Gotch gift offer, The Market Hub, I said that I thought the issues wold be resolved at the Gotch end, negating the need for newsagency software change and therefore costs falling to software3 company owners and newsagents.

Thankfully, it appears that The Market Hub from Gotch will be established as a separate supplier through XchangeIT, negating the need for any software changes. Why is this relevant? In my opinion it reflects the poor preparation by Gotch and XchangeIT for this project and an arrogance that they expect others to invest capital on their behalf. But they are from the magazine distribution side of the business so I guess that is their usual approach.

Turns out I was wrong. Gotch does not plan to operate within the IT standards they helped to establish. They have advised they will use the magazine file structure to send gift produce delated data, breaking the standards. They will do this with XchangeIT watching them, yes, the same XchangeIT that fines newsagents for poor data management.

I think this disregard by Gotch of the IT standards they imposed on n newsagents speaks to their views on the future of the channel and, in particular, the distribution of print product.

If they believed in the channel they would invest in the right tech approach to their data challenge.

If they respected newsagents they would follow the IT standards they themselves helped to bring into place.

If they believed in their own future they would invest in that. Instead, they have invested in product and marketing but not in ensuring data flow within the standards they established.

I think this looks bad for Gotch. However, I suspect most newsagents will not fully grasp why this is an issue. This will make it easy for Gotch to say I am wrong and that my software company is the problem.

Here are questions and answers that define what is happening and why I have written here and previously as I have:

  1. Does the gift product data from Gotch and sent through XchangeIT meet the data standards they participated in developing? No.
  2. Can Gotch fix the problem at their end? Yes.
  3. Will Gotch fix the problem at their end? They have said no.
  4. What does Gotch want done? They want the software companies to change how the magazine data file is used, to enable the misuse of the file structure by Gotch to work with established newsagency software.
  5. Who does Gotch propose pays for the software changes? So far, me and the other software company owners.
  6. How could this problem have been avoided? Through discussion with the tech stakeholders long before launch as that would have taken away the time challenges given that the Gotch gift product range has now been launched.

Gotch may defend their position by saying my concerns are driven by my work with newsXpress. Such a statement would be untrue. My concerns here, as explained, are purely tech standards related.

If Gotch cared about newsagents they would respect the IT standards as much as they expect (and demand) newsagents respect them.

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Ethics

Lottoland announces end of betting on Australian lotteries

Luke Brill, CEO of Lottoland, send this message to customers this afternoon:

Hi Mark,

We’ve not seen you around in a while and it would be great to have you back on board. I’d like to keep you up to date with all things Lottoland.

It’s been a huge year for us, in which we crowned our first Millionaire, paid out over $15m in winnings and launched our partnership with the Manly Sea Eagles and the Northern Territory’s, Mitchell Street Mile.

These are milestones we’re immensely proud of and are a sign of things to come.

On a different note, sadly, I have to announce that due to regulatory changes, after November 30, we can no longer accept bets on the Australian Lotteries. Namely, Mon&Wed Lotto, Tuesday Lotto, Thursday Lotto and Saturday Lotto.

Single and Subscription bets on these lotteries that were placed before November 30 will be honoured and winnings will be paid as though you entered the official underlying draw. Subscriptions will not be renewed after this date.

We will continue to keep you informed about new products and exciting alternatives available. To give you the chance to explore, here’s an early Christmas present:

Whatever you spend on your next cart, the first $5 is on us!

Kind Regards,

Luke Brill (CEO Lottoland Australia)

The withdrawal from betting on Australian lotteries has been brought after a long battle including late but welcome, I am sure, engagement by politicians from all sides on the Lottoland threat to lottery retailers, Tatts and, most important, government revenue.

I think this note from Brill could reflect a change in messaging from Lottoland.

Brill specifically refers to a Lottoland purchase as a bet. This has not been key in their advertising to now.

Yes, it is a bet, something that even Tatts did not push back against until late in the day.

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Competition

The importance of acceptance cards in the card department of a newsagency

Acceptance cards are an often neglected part of the card story in newsagency card departments.

Tucked away, out of sight and not promoted, acceptance cards are always there, but often forgotten.

Yet, acceptance cards represent a point of difference opportunity for us, they and other cards with them can be promoted to pitch a point of difference inn our businesses over other card retailers. They can be leveraged to reinforce us as card specialists.

One way to pitch these small format cards is to talk about the keepsake value of the acceptance card. Wedding couples love having cards to look back on ten, twenty and more years later. Our range of cards in-store allow us to help create these wonderful memories.

Facebook posts talking about making memories is one way we can leverage the opportunity of acceptance cards and similar for our businesses. A thoughtfully written social media post could educate engaged couples about collecting acceptance cards for future memories.

I think too often we expect cards to sell themselves without any out of store call out. We can’t rely on cards to sell themselves at all. No, we have to continually educate people about card giving. We have to show the importance of providing the keepsake memory in a form people will cherish in years to come. This is why I write about acceptance cards today – they lend themselves to this type of promotion.

While you won’t retire on the mo new you make from acceptance cards, you will benefit from reminding people in the area you serve that you have a range and educating them about how loved acceptance cards are by recipients.

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Greeting Cards

Do you still stock erotic magazines?

There was a time when Australian newsagents received a broad range of soft-porn erotic titles. From what I see, however, that is not so much the case today. Seeing this post on Twitter this morning. referencing a title supplied to some UK newsagents it made me wonder what Aussie newsagents receive today.

Do you still have erotic or soft porn section?

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magazines

Fairfax advertising with the New York Times

This is something you would never have seen in print: a Fairfax masthead, The Age, being advertised on a New York Times platform.

That this is being done speaks to the extent of change we are amidst – not only in print media but in all areas of business. What was usual previously can be rare today just as what was taboo previously can be usual today.

Indeed, the Fairfax ad on a NYT site is a reminder that we cannot apply to today’s business world some expectations and rules from years ago.

In our channel for decades we lived with the understanding of territories. In the newspaper and magazine distribution space territories still exist. However, in retail, there is no such thing as a territory, certainly not when you can easily win a customer online. These are the days of retail without borders.

Related: B&T had an interesting report about cross-border sales.

It is in parts of our businesses where we practices of yesteryear continue that hold us back. While the world has moved on, in some parts of newsagency businesses the old way is the expensive and slow way. I am thinking here in particular of the old-school regulation around lottery products, magazine distribution and newspaper distribution. In each of these areas our ability to compete and be relevant is being held back by old practices and out of date compensation.

Some newsagents are breaking free and expanding their product portfolio way beyond what has been traditional for a newsagency and through this facilitating relevance in this new world. Hey if a couple of old-school newspaper publishers can do this so can we.

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Media disruption

Allens changing the perception of lollies

I love what Allens is doing this Christmas with their pop-up shops in some capital cities. I saw their Sydney pop-up a couple of weeks ago at Westfield in the centre of the city. They are getting people to pay over the odds for jars of personally selected lollies with a personalised name sticker. It is a very smart marketing move recasting the image of the Allens products.

What Allens is doing is recasting their image and driving appeal with a a broader pool of customers. Its is a smart move. Just about any business can do this.

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confectionary

Why Tatts is asking retailers questions about employee pay and conditions

Newsagents have been wondering why Tatts is expressing interest in employee arrangements in newsagency businesses. I have had plenty of questions and I know others have too.

This situation has come about because of the federal government passing vulnerable employee legislation following the 7-Eleven debacle. The Fair Work Ombudsman website sets the scene:

On 15 September 2017 the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 took effect. It makes the following changes to the Fair Work Act 2009external-icon.png (the Fair Work Act):

  • increase penalties for ‘serious contraventions’ of workplace laws

  • make it clear that employers can’t ask for ‘cashback’ from employees or prospective employees

  • increase penalties for breaches of record-keeping and pay slip obligations

  • employers who don’t meet record-keeping or pay slip obligations and can’t give a reasonable excuse will need to disprove wage claims made in a court (this is also referred to as a reverse onus of proof)

  • strengthen our powers to collect evidence in investigations

  • introduce new penalties for giving us false or misleading information, or hindering or obstructing our investigations.

Read what the Fair Work Ombudsman website has to say about franchisors that have a significant amount of influence or control over the business affairs of the franchisee:

These changes apply from 27 October 2017.

Franchisors and holding companies (a company that has control over subsidiary companies) can be held responsible if their franchisee or subsidiary doesn’t follow workplace laws about minimum entitlements, the National Employment Standards, awards, sham contracting, record-keeping and pay slips.

This will apply to franchisors that have a significant amount of influence or control over the business affairs of the franchisee.

Franchisors or holding companies could be liable for breaches or underpayments if:

  • they knew (or could have reasonably known) that a franchisee or subsidiary wasn’t following workplace laws
  • they didn’t take reasonable steps to prevent it.

We are working with franchisors, their advocate and advisers and will have more information in our Help for franchises section when the changes take effect.

Tatts is acting because of an understanding of that term – significant amount of influence or control over the business affairs of the franchisee.

It’s not only Tatts caught in this. Any business that can be claimed to have a significant amount of influence or control over a downstream business is in the cross hairs.

I think there will be plenty more news and engagement about this in the channel river the next few months.

The challenge is the definition: significant amount of influence or control. It is not as clear as it could be. Some politicians say the Fair Work Ombudsman has overreached. We will have to see how that plays out.

There is plenty of advice online outlining the obligations for franchisors and organisations like Tatts outlets.

For a government that said it would reduce red tape for small business, this legislation is considerably adding to it.

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Newsagency management

Newsagency marketing tip: shining a light on friendship

This image is another example of how an image can drive social media engagement, which then drives in-store purchases.

A brief moment taken to put items together and photograph them pays off when a post drives outcomes at the register. It is easy to do this yourself, without using an ad or social media expert.

This is simple and effective marketing, for which your business can be known and through which your business can break free of the usual advertisements that hit people on social media and elsewhere.

Easy visual marketing is the best given the platforms to which we have access to today.

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marketing

Newsagency management tip: don’t clog your data

Some suppliers load your computer systems with considerable more data than is necessary. Take Blueshyft, in my opinion they want you to load 100,000s of stock items because their tech approach is inefficient. Their inefficient approach is decd and abetted by XchangeIT. This is all so you can sell low margin agency product that leeches off your traffic rather than driving net new traffic … again, in my opinion.

Bloated data files are not good practice in any IT system.

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Management tip

Pet Barn leads on pet Christmas gifts

Visit your local Pet Barn right now and you see a consistent pet Christmas offer. I have been in four stores this week and the pitch is consistent, and good. Pet gifts are massive. I have had success in the dog and cat gift space through the year and at year end.

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Gifts

How is Christmas going for you?

Early year on year sales data I am seeing indicate a solid start to Christmas with some stores achieving terrific year of year growth. This data is from a range of newsagency business situations – city, country, shopping centre, high street, banner group and independent.

Card sales are strong, especially boxed cards with some stores tracking double digit growth. This is good news given the early sales of boxed cards compared to singles.

Gifts are strong too.

While it is too early to say how Christmas 2017 is compared to 2016, the early indications are encouraging.

How is Christmas going for you?

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Newsagency management

News Corp., launches digital-only subscriptions

News Corp. has launched app-only digital-only subscription offers for major capital city daily newspapers –The Daily Telegraph, Herald Sun, The Courier-Mail and The Advertiser.

This move is a departure from the model followed up to now, one whereby print editions were involved – even if only for two days a week as was the case for some packages.

While this move seeks to grow the digital subscriber base, it also offers the opportunity of speculation about where the company sees print in its future.

Mediaweek has more on the story.

With over the counter print sales remaining in steep decline, separating the digital subscription offer from a print offer makes sense. I know of people who said they would not subscribe while they had to take print product.

Checking the Herald Sun website, the subscription price is $3.50 a week. This feels high to me, compared to digital-only subscriptions for other titles with which I already engage. Time will tell.

In addition to recently upgrading there apps for its capital city mastheads, News Corp. is provoking a better online experience. When I was on their website looking at subscription offers, this popped up…

This reflects a best-practice approach to customer service – making contact easy. The only point of friction is the limited hours of access to speak with someone. Online today = 24/7 availability.

From a traditional newsagent perspective, the digital-only subscription move by News Corp. is a message to not rely on print newspapers as one may have in the past. Sales are only hearing in one direction.

While it feels like a slow slide, at some point, when it commercially suits a publisher, print editions of newspapers have been and will be cut.

The News Corp. move shows a company maintaining the customer connection regardless of the method of connection.

I don’t begrudge News Corp. doping what they are doing. If anything, their move is late. The needs of their shareholders are well served by offering digital-only subscriptions as they now offer.

Newsagents need to:

  1. Chase new traffic to replace newspaper shopper traffic.
  2. Manage newspapers in the business to have the lowest operating cost possible.
  3. Locate newspapers as an impulse purchase more so than a destination purchase.
  4. Only do newspaper promotions if they are stand-alone commercially viable.
  5. Understand the money they make from newspapers and make business decisions accordingly. If you are making good money, embrace and support the product to make more.

In fact, these steps should have been taken years ago.

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