Instant fines for shoplifters
Victorian newsagents should be aware that the police can now issue instant fines for shoplifters where the value of the theft is under $600. The Australian Retailer’s Association has lobbied for this for some time.
BOPO, my money your way
Newsagents are getting questions from customers about their BOPO cards and, in particular, how they can use the BOPO service. Cuscal, the financial institution behind the Bill Express BOPO product issued a helpful statement on Friday last week. They also provided a diagram to help BOPO customers understand where their cash may be depending on when they loaded to their BOPO card.
While the administrator has BOPO and other Bill Express assets for sale, BOPO is tainted goods and probably of little value.
While two of the BOPO companies, BOPO Cards Pty Ltd and BOPO Cards (Australia) Pty Ltd have had administrators appointed, BOPO Cards (International) Pty Ltd has not.
SMH, June 14
The Sydney Morning Herald today has a GIO ad stuck over the word Morning. I took the photo at the Virgin Blue lounge – it’s their red sticker on the left. Copies of the SMH which I saw in the city today had the GIO ad a little lover – wiping out the masthead.
Newsagents had an argument with publishers four years ago about what else they could deliver with the newspaper. Their argument was that they did not want to diminish their brand. Today’s newspapers do just that.
Books go off!
We have just finished the third week of our book sale at Frankston and Forest Hill and it is working a treat in both locations. Sales have been excellent, especially through school holidays. What we are running is the newsXpress book strategy.
While we have had success putting books on a table in the past, being part of something bigger means the rewards are greater and that we have access to good collateral – such ad the brochure. In the financial year just completed, books have increased their contribution by a factor of eight times.
Isn’t the NRL season half over?
The folks at Network Services played a joke on Victorian newsagents Friday sending out boxes of the NRL 2008 select album and card packs. Not only is the NRL season more than half over but this is
How an industry association acts
The Queensland Newsagents’ Federation is providing unbiased professional advice to newsagents on pre paid product options, eftpos processing options and steps to take in relation to the Bill Express direct debit. Importantly, the QNF declares that it does not receive any commission or rebate of any kind.
This is how an industry association should act. Maybe they should consider inviting newsagents from outside Queensland to join?
Call for BusinessWeek to go digtital
Douglas McIntyre, writing at 24/7 Wall St calls for BusinessWeek to ditch print for digital. Here are two key paragraphs from McIntyre’s article:
BusinessWeek has the opportunity to move completely to the internet and take out all of its circulation acquisition costs along with printing and distribution expenses. The publication would give up a significant amount of print ad revenue, but most of that is likely to disappear in the next few years anyway.
A reader going through the current magazine will notice that a good portion of the content is “news”. Much of that is old before it reaches subscribers. That problem does not exist online.
There are many conversations taking place online about print magazines and whether or when they move to digital editions. Newsagents ought to stay in touch with the trend.
On BusinessWeek, I like the magazine but rarely read the print edition. McIntyre is right, it is out of date by the time it is available.
Marketing tip: Christmas in July
There are a few magazines out now with Christmas in July cover themes so I thought it would be a good time to offer some in-store retail and marketing tips for Christmas in July. Santas Warehouse has some good information on the history of Christmas in July.
- Check with your local council or business association as to what they have on. A quick search online shows plenty do.
- Choose a day to celebrate and focus your attention on having fun. Dress the team and the store.
- Have a competition for the kids around the theme.
- Display any spare Christmas stock from last year.
- Create a giant Christmas stocking which one lucky customer can win.
- Use the event to discount slow moving items – try and create a real sense of bargains.
- Promote the event using a flyer to houses around your location – it is a great way to draw people into your shop. On the flyer, promote the activities and any specials.
- Play Christmas music.
- Call the local paper and get their attention.
Events like this are all about giving people a reason to visit your shop. Making the event fun and relevant to the season (winter) should make it a winner for you.
Bill Express coverage on 2GB
Ray Hadley gave the Bill Express story a good run on Friday. You can here a couple of clips from the shop at the 2GB website. Listen to the interview Ray did with Don MacAskill the Acting CEO of the ANF. Don does not answer some of Ray’s questions. For the record, I note:
- The ANF banked in excess of $1 million from Bill Express.
- The ANF staff actively promoted Bill Express.
- The ANF published industry journal actively promoted Bill Express – editorial independence on Bill Express was sold by the ANF to Bill Express.
- Not one article in the journal indicated to newsagents that the ANF had a commercial arrangement with Bill Express. Newsagents did not know about the secret commissions being paid.
- The ANF earned a success fee for every site signed up on top of money from each bill payment.
- I cannot find any evidence of ANF undertaking due diligence of the contracts newsagents signed.
- The ANF has now endorsed other suppliers (of banking and related arrangements) for which it receives, reportedly, 40% of the available commission – newsagents get 60%.
Ray hadly has helped newsagents tremendously by giving this story airtime. It is important that newsagents talk to their local radio stations and other media outlets to ensure that this story continues to get attention.
Phonecard alternative for newsagents
In the wake of the collapse of Bill Express, Access phonecards can send you physical $10, $20, $30 & $50 calling card stock overnight. Newsagent commission is 30%. These can be used for calling just about any country and rural
Disclosure: I am a shareholder in in Access phonecards.
ANF QLD Committee resigns
On June 27, the Queensland Committee of the ANF, formed by the national body in accordance with its Constitution, resigned. In advising the ANF Board of the decision, the committee members stated:
The members of the Qld Committee of the ANF have unanimously resolved to resign from their positions as an expression of concern at the apparent lack of commitment and progress on the part of the ANF Board of Directors in facilitating a successful merger of the QNF and the ANF in a timely manner.
Further the members of the Qld Committee express their total commitment to having one united national organisation for newsagents and regret that their contribution towards that goal through their participation in the constitutionally structured Qld Committee of the ANF has been unsuccessful.
The members of the Qld Committee further regret that they have been treated as ‘somewhat redundant’ by the ANF Board with no opportunities for consultation or operating as the conduit between the Board and the Individual Members in Queensland in relation to the channeling of information and resources – as set out in 10.6.3 of the Constitution of the ANF.
This decision was taken because of what the Committee saw as a total disregard of democratic, constitutional and transparent processes by the ANF in navigating to creating a unified body to represent newsagents nationally. as the committee stated to the ANF:
The decision to resign as the Qld Committee of the ANF has not been taken lightly or in haste. The remaining members of the Committee have persevered for 4 years (others have walked away earlier) in their endeavors to unite newsagents in Queensland and have made this decision in a desperate attempt to bring the situation to the notice of Qld ANF members and the ANF Board.
Several now former ANF Queensland Committee members have resigned from the ANF and joined the QNF.
Reading the letter from the Committe to the Board of the ANF, it is clear that there has been a clear breakdown of communication. Following the announcement by the ANF of a merger of the ANF and QNF, there has not been further discussion. Indeed, QNF representatives were not invited to the ANF Convention on the Gold Coast – a perfect opportunity to resolve remaining issues and achieve the representational unity newsagents call for. I suspect the ANF is too focused on commercial matters to worry about representational issue.
Queensland has been problematic for the ANF for more than ten years. I have first hand experience. In 2004, the ANF and QNF were one vote away from resolving differences and merging. The Queensland ANF Director interfered 24 hours prior to the meeting which would resolve this and the good work of many individuals over previous months was undone.
It is my view that the personal hatred of a very small group of men in Queensland is the barrier to unity among newsagents.
The Bill Express issue is related to this since it was the QNF which back in 2003 called for caution among newsagents about Bill Express because of concerns about the agreements. Events of recent weeks have found the QNF concerns to be well founded.
Ask for clarity on ANF commission
Newsagents are getting inundated by suppliers to sign up for mobile recharge and eftpos arrangements including two faxes from my own business (but no calls from us). Given my earlier post this morning about evidence suggesting the ANF is getting 40% of available commission and the newsagent getting 60%, I suggest to newsagents that they ask any caller: How much commission is paid to the ANF? Tell them you will not consider their offer further until they put their response in writing to you.
Newsagents have a right to have the facts so they can make an informed decision. I am certain that faced with one offer paying a newsagent 6% commission and the ANF, say, 4% commission on mobile phone recharge or another offer paying the newsagent 6% and no other party any commission, the newsagent is likely to go for the latter.
The ANF is not acting as an industry association in this matter. It is acting as a commercial party. This is demonstrated in every announcement made about eftpos arrangements.
While I negotiated the deal with St.George, I advise newsagents who ask me today what they should do since all they have is the Bill Express terminal for eftpos to install the unit shipped from the ANZ. This provides time for the dust to settle and clarity to be achieved on any currently secret commission being paid to the ANF.
Promoting the $40 million Oz jackpot
Despite heavy-handed treatment from Tattersalls in recent weeks, we continue to proactively promote their products. We have a great display promoting the $40 million OzLotto jackpot down the middle of the store – way outside the precious Tattersalls Dedicated Area.
The photo does not do the display justice. It’s certainly driving good sales. And, yes, the posters at the front are stuck over our Bill Express screen.
Dolly beanie and scarf
The choice for our weekend counter promotion was easy yesterday – the Dolly beanie and scarf make for an ideal impulse offer.
Even though this issue of Dolly has been out for a couple of days, we are expecting the weekend to be very good for this counter promotion – especially since this is when we have a younger demographic in-store. Being able to display the $39.95 gifts makes the offer easy to understand.
Sadly, ACP Magazines won’t recognise this promotion as it’s not part of their standard promotional package.
Leveraging the iPhone
The geeks were out in force across
We sought to tap into the heightened interest and placed the Macworld magazine in the pocket above the Herald Sun. The iPhone on the cover caught some eyes.
Saturday help on Bill Express wash up
Tower Systems has increased support coverage today to help answer questions about eziPass. The Help desk can be reached on 03 9524 8000. Our usual after hours numbers are on as well.
Does the ANF take 40% of the prepaid commission pie?
I have been shown a document sent to a newsagent considering the Suncorp Eftpos arrangements being promoted by the ANF in the wake of the collapse of Bill Express.
The document I have seen claims the ANF receives 40% of the commission amount paid on prepaid product and that the newsagent receives 60% of the commission amount.
If this is correct, newsagents ought to be shocked that the association acting on their behalf takes 40% of the available commission pie. It might explain why the ANF is so selective in the eftpos offers it promotes.
While I accept that an association needs revenue to operate, taking 40% of available commission is greed. What is the ANF offering for its 40% commission? Newsagents provide the retail outlet, labour, in-store marketing and infrastructure. The ANF only has access to member communications to sell.
The ANF ought to be transparent with its members about the commissions it makes on the various offers it promotes to newsagents. Secret commissions leave newsagents ill informed as they consider the best electronic platform for their business.
Motorlink fuel card drops dead
The Motorlink fuel card, which is part of the OnQ business and through them related to Bill Express, appears to have collapsed yesterday. I have been told that people presenting the card to pay for fuel in a petrol station have the card declined. A call to Caltex says the card is dead. With thousands of cards on issue, I am surprised that there has not been any media coverage of this. Motorlink is the fuel card previously recommended by the ANF.
Motorlink Systems Pty Ltd has one shareholder – On Q Company Pty Ltd.
The ANF and Bill Express legal action
I wonder if the ANF got legal advice before it published its advice to members yesterday about legal action related to Bill Express. It has been suggested to me that the ANF published what it did in an effort to hinder the Class Action commenced by a group of NSW newsagents against the ANF, Bill Express and Technology Business.
The actions of the ANF on the Bill Express matter demonstrate that this is not an association but a commercial entity protecting its commercial interests ahead of the needs of member newsagents.
In several private and public communications people representing the organisation have been loose with facts.
Journalists need to dig deeper on Bill Express
The story which needs to be written about Bill Express is one about how an industry association sold its soul, cost its members tens of millions of dollars and walked away with a nice profit, only to sell its soul to the next in line.
Journalists need to be wary of the statements being made by the Australian Newsagents’ Federation about Bill Express. On this matter, the ANF is not acting as an association representing its members, it is acting as a commercial partner of several companies involved.
In 2003, the ANF entered into a commercial Heads of Agreement with Bill Express subsidiary Dialtime Pty Ltd. In doing this, it rejected an alternative newsagent owned phone recharge and bill payment offer. For the record, I note that I was not on the ANF Board at the time and I had no commercial involvement in either Bill Express or the newsagent owned alternative.
In the 2003 Bill Express / Dialtime agreement, the ANF agreed to promote the Bill Express, Dialtime and eftpos offers “to the exclusion of all other electronic pre-paid and eftpos offers”.
Last year, I approached the ANF about negotiating a better rate for newsagents. The ANF CEO told me that the ANZ offer was the best offer for newsagents. I did not accept that and proceeded to negotiate with several banks. The result was an offer from St.George which was substantially better than the offer from the ANZ.
In 2008, when the 2003 Agreement ended this year, the ANF entered into a commercial agreement around mobile phone recharge and merchant services from Suncorp and St.George banks. The St.George rates achieved by the ANF are the rates I negotiated. I’d note that my work on the St.George rates was pro bono – I did not seek nor am paid any fee for acquiring a new merchant or for transactions processed.
Not surprisingly, following its agreement with St.George and Suncorp, the ANF started talking down the ANZ rates and talking up their new commercial partners.
In today’s Age newspaper, ANF acting CEO (no announcement has been made yet about a change of status) Don MacAskill is quoted:
“A lot of newsagents are in a predicament, wondering do we get an alternative, will the platforms still be operating, ongoing,” said ANF chief executive Don MacAskill.
“We really are trying to keep our members informed of where things are at and, at the same time, still recommending or giving details of alternative service providers to try and fill the gap of some of the things that were originally facilitated by the Bill Express platform.”
This is where journalists need to ask questions. The ANF is not acting on behalf of members, it is acting in the interests of its commercial partners as it has done in the area of mobile recharge / bill payment since 2003. Journalists ought not quote the ANF as a representative body.
Journalists cannot treat the statements from the ANF about Bill Express as statements from an industry association. They are statements from a commercial body which profits from those it talks up. An association wold do what the Queensland Newsagents’ Federation is doing and listing all eftpos offers available to newsagents so newsagents can make their own commercial decisions. The ANF, instead, actively talks down the ANZ and Commonwealth Bank offers.
Some newsagenmts are so incensed at the poor representation by the ANF of member interests that they are resigning their membership.
I am conflicted, as the ANF often points out, because I own eziPass. eziPass is offered free to all newsagents. I do not make anything from transactions. The ANF knows this. eziPass is available free to any newsagent. Indeed, for one day a couple of months ago, the ANF endorsed eziPass in two communications. My conflict is nothing compared to the ANF conflict.
Marketing tip: use the Bill Express screen
The now dark Bill Express advertising screens are a marketing opportunity for newsagents.
While some newsagents have connected them to DVD players and other devices for use in store, I suspect that most newsagents will not venture that far. Given that most of the screens are in excellent highly visible and high traffic locations, here are some in-store marketing uses for the screen which you could consider:
- Feature a poster or cover display of your Magazine of the Week. Promote a title most customers would not see at the front of the shop.
- Promote lottery jackpots – OzLotto is $40 million this week. Hopefully it will not go off and next week you’ll have a $50 million jackpot to promote.
- Invite a local charity to provide a poster to be stuck over the screen for a week or two.
- Cover the screen with white board material and make your own Specials Board. Be sure to change the specials at least weekly.
- Put up a poster supporting your a local sports team.
- Talk to your merchandiser about creating a greeting card display to go over the screen – something around the Kung Fu Panda themed cards and bags from hallmark would work.
- Create a simple product based display. For example, AFL footy cards are still hot in our newsagency. We could blow up a footy card pack to the size of the screen so it really stands out when people see it.
All of thse ideas are designed to add to the theatre of retail. With the screens up high and in a great position whatever you promote ought to get a good lift as a result of your efforts. Have a crack.
If none of these ideas excite you, go out to the front of the shop and look at your screen and dream up some ideas which will fit your business. Leaving it dark helps no-one, you might as well use the excellent location to your advantage.
The Bill Express story from the other side
I have had contact with some former employees of Bill Express overnight, adding a very human element from the other side of the crash of the company. The stories are similar – no knowledge of what was happing higher up, outside their direct area of responsibility; the company was in serious trouble months ago; the various investigations will hopefully get to the truth of the collapse.
One caller had some interesting comments to make about the statement from the Administrator yesterday that the Technology Business companies were “unrelated” to Bill Express.
There is considerable anger at the treatment of employees over the last weeks, the stress and the lack of payment of entitlements. I am surprised that this last issue has not received media attention. Maybe it is because they are IT people, it does not run as well as car workers or process workers being sacked without entitlements.
The newspaper of the future
As industries and communication channels like cable, the Internet, XM radio and even book publishing migrate toward an on-demand, highly targeted model, the future of news media depends on leveraging new trends and opportunities and harnessing new technologies. And today, advanced digital printing technology makes the vision of creating totally variable newspapers a practical reality.
So opens the website promoting the Second Annual Conference on the Individuated Newspaper. The conference was held two weeks ago. The program looks like it would have been fantastic, all about the newspaper of the future. Read what Vin Crosbie had to say at his Digital Deliverance blog about his contribution to the conference – you can read his keynote speech.
Newsagents need to be across the changes around distribution of news. Not to add to our fear but to show us opportunities which we can leverage.
Making small spinners work
Since we placed the collection of small spinners of frames, magnets, keepsakes and similar items on a table near our front window they have worked better for us. Previously these spinners were a pain in the neck and spread across the card department. Now, they have a home and are easier to shop and maintain. It’s basic retail really. The alternative of one bigger spinner to house them all is no good because then we can’t locate one spinner at the counter or elsewhere for a short time to boost sales.