Author: Mark Fletcher

I have spoken with several newsagents about reported requests from tatts representatives to retailers that they print more and more marketing material in-house.

One I spoke with told me there had been a considerable reduction in the marketing collateral provided by Tatts.

Another told me their area rep regularly showed photos of suggested displays, displays completely made up of collateral printed in-store by the newsagents.

All of this adds to the operating cost of Tatts outlets. Increasing costs for what is a slim margin business is a problem.

If Tatts is providing less printed collateral and requesting more printed in-store this is an extra cost on top of the expensive new corporate image fit out and the expensive digital marketing technology requires,.

The other issue I am hearing about is the claim that images some tatts reps show newsagents when suggesting they do the same show displays that themselves breach the Tatts guidelines as they obscure Tatts poster units. Newsagents have been breached for this yet, if my source is right, tatts representatives are encouraging such breaches.

From what I am hearing there are double-standards being played by Tatts area managers – within states and between states. As retailers talk with each other this makes for a challenging situation … with the sword of an expensive breach to deal with.

Tatts needs to sort this out as it adds to stress and cost for the small business retailers.

Footnote: I was not going to write about Tatts today but newsagents contacted me about these issues. The best thing Tatts could do to stop posts like this would be for the company to get its act into gear.

A Tatts area manager posted this photo with the comment did someone say 30 Million !!! Very eye catching and driving customers into store.

Okay I guess it is eye catching in that there is nothing else to look at. However, I’d like to see the evidence of the $30 million prize posters driving customers into the store.

The store appears to be regional or rural. If this is right, shoppers are unlikely to have brick and mortar lottery retail alternatives nearby. If this is the case then the number of posters are not likely to spike traffic.

Any time a Tatts representative posts a photo with comments they need to provide context, they need to prove their claims. If these posters are driving customers into the store the Tatts rep should advise the extent of this. What doe they mean exactly. Prove it. They should also encourage a healthy business and not one focused only on one product.

Tatts reps and management have made many claims in recent years about the demanded refits and the digital marketing platform and from what I am told there is little (if any) evidence offered to support the claimed benefits. 

As I noted in this place yesterday, newsagents are quitting their businesses because capital investment along the lines of what Tatts demands is not delivering financial benefits to justify the investment.

My opinion is that the number of posters in the photo is a waste of good promotional space. This business is pitching one product. Once the $30 million is done, what next? Promoting, say, three product categories on the front of this should would treble the reasons you are calling customers in. Promoting one product is inefficient.

I don’t think the extra posters are delivering the traffic and revenue bump to justify all the space given over. I could be wrong. In fact, I hope I am wrong for the sake of this business. But I don’t think I am wrong.

I see these posters like newspaper posters. Take them down and your sales are not affected. Tatts says put the posters up without proof that this many posters work.

Tatts has an obligation to be factual in its representations. As a franchise operation it has obligations to its franchisees. The company should back its claims.

I know of newsagents are preparing to hand back their Tatts agency at the deadline of the requirement for them to install the new corporate image and digital platform.

Several who have spoken with me say they have advised Tatts.

I know of other newsagents who have decided toque their businesses because of the Tatts refit and dignity marketing costs.

It surprises me that Tatts is not more engaged on this issue, in the face of this evidence.

Here we have small business retailers turning their backs on their businesses because capital expenditure requirements for which there is no obvious return on investment.

The silence from Tatts on their requiring a capex by small business retailers for which there is no sound business case. Indeed, I am told that when newsagents raise this at Tatts forums they are shut down.

My understanding is that a franchisor cannot rehire a franchisee to engage in capex without provide a sound business case.

Tatts has enough shops with the new cutout and the digital marketing platform for them to provide evidence of the commercial value of the capex.

The only reason I can think why Tatts would shut down conversation or provide evidence supporting the capex is that no such evidence exists.

Newsagents I have spoken with recently feel helpless, leaving them no option but to walk away. This is a dreadful situation for their families. It speaks to the handling of this by Tatts.

I don’t expect comments to this post as most who do comment on Tatts matters raised here contact me privately out of fear of retribution by Tatts.

Tatts could fix the situation with evidence of a good return on investment from the refit and digital marketing investment. I cannot understand why Tatts refuses requests for such information. The only reasonable conclusion is that such evidence does not exist. This his what newsagents think. Tatts knows it. mThe best counter tatts could have would be evidence to the contrary.

The future of many family owned businesses rests with Tatts.