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Ethics

Inside Out magazine still cheap at Coles

cheapinsideoutIf every newsagents needed a reason to quit Inside Out magazine it is the continued discounting being run for the title at Coles. Given how Coles operates this has to be a publisher initiative. The Exclusive to Coles bookmark in each copy tells shoppers to not purchase the title elsewhere so why should we stock it?

I don’t understand the ethics nor the social responsibility of this move. It seems dumb to me that a publisher deliberately and for the long term prices a magazine in Coles at 26% less that the price of the title elsewhere and less that we are charged for the title.

There is no sense in stocking a title that is priced in such a way as to make my business look expensive.

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Ethics

Free marijuana

dopeI received this bag containing 8g of high-grade marijuana at my office yesterday. There was return address, no note, no Thank You card … just the bag of dope inside three carefully packed layers of sealed bags and inside a prepaid post bag. It was addressed to the office.

With a street value of around $80.00 it’s either an expensive prank, a mistake or some other game. I delivered it to the local police to be on the safe side.

What’s the craziest thing you have been sent to your business?

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Ethics

How does the ACCC set its priorities?

mbeerThe ACCC chairman has been all over the media this week touting a victory over Maggie Beer and what the ACCC says is misleading labelling.

I don’t see how any shopper considering purchasing Maggie Beer products could have been misled. The products are conceived and developed in Maggie Beer’s kitchen in the Barossa Valley. That alone makes the labelling accurate in my view. There is no claim the products are made there.

What a waste of public money.

It surprises me that the ACCC has time and money for this yet no time or money to investigate newsagent claims that they are treated so differently by magazine distributors that it holds back our ability to be competitive against the supermarket duopoly.

Complaints I have heard of being made to the ACCC about this are met with sorry we’re not pursuing the complaint, consider civil action if you think the treatment is unfair from the ACCC. If they researched such complaints thoroughly, they would discover a magazine supply model that gives the supermarket duopoly an extraordinary competitive advantage that could ultimately disadvantage consumers.

Shame on you ACCC.

The image is from the story on the ABC website.

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Ethics

Newsagency magazine early returns survey results

earlyreturns168 responses to my magazine rely returns survey provide a valuable  insight into newsagent thinking on early magazine returns.

167 of the 168 respondents undertake early returns. 100 say they return the day magazines come in and 67 say they early return before the end of the month but not the day they come in.

What is most telling is the reasons newsagents indicate for engaging in early returns. 91.67% of newsagents say they are sent too much stock. This is a damning stat. Every copy of every magazine oversupplied has a cost in space, labour and opportunity to newsagents.

48.81% of respondents say they early return a title because they do not have space to this play it.

The newsagency channel is the only channel selling magazines in Australia where product is sent without regard to the space available for displaying products. Our treatment in this regard disadvantages newsagents and provides our competitors with a competitive advantage.

Magazine publishers ought to study the survey results as should those working for magazine distributors. The results reflect a brokenness that must be fixed if newsagents are to stop retreating from engagement with magazines.

It is in the hands of magazine publishers and magazine distributors to fix this. I am worried that they will realise this too late to save magazines in the newsagency channel.

You can see the survey responses here.

Tomorrow, I’ll look in some detail at the issue of delayed billing covered in the survey and Wednesday I will share newsagent responses to my last question: What can publishers and or distributors to do to stop you early returning?

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Ethics

Why this small business owner does not support Joe Hockey’s federal budget

Federal Treasurer Joe Hockey sounded pathetic earlier this week when he moaned about poor support from business for the government’s budget.

Hockey has been reported as complaining that businesses and business groups need to support the budget more.

I own several small businesses and I do not support the budget. Here’s why:

The budget is based on a lie. There is deficit calamity. When you compare Australia to other OECD nations – indeed any developed world comparison – our budget, including its deficit – is healthy. Indeed, external assessments by respected commentators and authorities rate the fiscal health of Australia as handed over to the new government as excellent.

The budget argues against itself. Giving a quarter of a billion dollars to religious education and millions to free marriage counselling is the government interfering where it should not, engaging is exactly what it said governments should not do.

The budget does not fix what the government claims it fixes. The budget and the forward estimates do nothing to address the deficit.

The budget is unfair. Reducing money for those most vulnerable and increasing money for those least vulnerable is unfair. The GP co-payment is a dog-whistle in my view. The argument abut medical research is nonsense.

The budget continues our wasteful fear campaign. The billions spent by Labour and the even higher abounds spent by the conservatives on offshore processing and ‘protecting’ our borders bakes the worldwide refugee problem worse and not better in my view.

The politicians are out of touch. Preparedness to spend billing on paid parental leave is proof of this as is the spending under Liberal and Labour on VIP jets shows how little they want to connect with common folk.

I see next to nothing in the budget for small business and nothing whatsoever to encourage optimism in Australia.

Small businesses benefit most from spending by everyday Australians. I can;t see anything in this budget that will encourage everyday Australians to spend more.

We elect governments to lead and sure they will pick policies and spending priorities that suit them. Leadership, however, is about representing the whole country. I don’t see that in this budget. That’s why this business owner does not support it.

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Ethics

Gotch magazine returns audit crackdown

Newsagents have told me about a crackdown by magazine distributor Gordon and Gotch on magazine returns claims. They are cross-checking supply and sales data against returns claims and going back to newsagents where the data does not add up.

While Gotch has spot checked returns for years, they now appear more attentive. Newsagents over claiming returns are more likely to be caught.

While there is plenty wrong with the magazine distribution model, consistent over-claiming of returns is not justified and could result in criminal proceedings if Gotch decided to take it that far.

My advice to newsagents is to have a structured transparent process for scanning returns as well as for arriving and selling stock. Fudging figures to get a bigger credit that is not justified in supply and sales data will result in you being caught.

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Ethics

The importance of checks and balances in your cash management processes

I was talking with a retailer a couple of days ago about the theft from his business of more than $50,000 by a business partner. He was devastated that the long-term business partner would steal from their 50/50 owned business.

The theft has challenged the future of the business as two long time family friends collapse their business relationship. It is touch and go if the business will survive.

Partners can steal from each other if there is easy opportunity. That was the case in this situation I am writing about.

For the sake of everyone involved, partners should agree on a transparent process for handling cash with different people responsible at different times. This coupled with good checks and balances and a fine attention to actual grow profit by department and with proper stock control processes and you have several points at which theft can be uncovered.

The easier you make it to detect theft in your business the less likely you will be stolen from including by your business partners.

It is wrenching hearing someone talk about theft by an employee or a business partner. The damage beyond the cash itself is far-reaching. It can change someone forever.

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Ethics

Newsagents: beware any who claim they can get you a better lease deal

I heard this week about a newsagent who relied on someone who claimed they could get a better lease deal and ended up paying more per square metre than a nearby competitor. The lease negotiator they used negotiated the lease for a couple of newsagencies that went broke on the back of what I’d saw were poorly negotiated leases. I say they were poorly negotiated because I saw the leases and would not have agreed to them myself.

It is easy to claim to help newsagents get a better lease. Achieving a good lease requires a good business or business plan from the newsagent, diligent professional work, a co-operative landlord and a lease professional who has no vested interest other than getting the best lease deal for you.

If a newsagent asks me for lease advice, especially one in a shopping centre, my advice is to pay for the services of an independent lease professional.

Too many newsagencies have gone broke in recent years on the back of leases negotiated by parties with a vested interest. This is why I say buyer beware of people who claim they can negotiate a better lease for you.

Be inquisitive about any marketing pitch by someone or a business claiming they offer lease negotiation services or that they are favoured by landlords. Seek evidence. Seek clarification. Get it in writing and do your research.

See if the claims about lease negotiation stack up to the test of history.

Anyone can make a claim in their advertising and marketing. The truth is what matters and I know of former newsagents who would say that they wish they had done their research before believing they would get a better lease through a specific party.

Ask for before and after evidence in writing. Ask for their most recent references. Don’t accept their word, accept only proof of good they have done.

Even ask for advice from a friend or someone in whom you have trust. Don’t be afraid. The alternative is you trust them and maybe find that the lease they negotiate for you is the worst business decision you even made.

A bad lease can cost you hundreds of thousands of dollars, your home, your health and even your family. There are former newsagents with stories they could share.

This post is about no one person or business. The advice is advice anyone with your best interests at heart would give.

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Ethics

It’s all about priorities I guess

The Coalition parties made considerable noise about reining in the Coles and Woolworths prior to the election and I suspect this is, in part, what got small business supporting them. They have found time and money for projects such as $250M for chaplains in schools and the winding back of financial advice laws that were brought in as a result of poor and questionable advice that cost everyday Australians billions. They have not found time to rein in Coles and Woolworths and these two continue uncontrolled in their pursuit of independent small business retailers, like newsagents.

If ever the government was to demonstrate small business support it would be in reducing the market power of Coles and Woolworths.

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Ethics

Beware UKASH scam on a newsagent

Another newsagent has been hit by a UKASH scam with someone calling the business claiming to represent what they called epay services. They were aggressive and demanding, telling the staff member to print two UKASH $300 vouchers. They knew the voucher serial numbers which is particularly disturbing and is being investigated by several parties right now.

No one from epay or Touch would ever call your business asking you to print a voucher. Tell your staff.

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Ethics

News Corp. pushes newspaper shoppers to supermarkets while ignoring newsagents

newscorpritchiesdealNews Corp. yesterday advised newsagents in Victoria of a deal with Ritchies supermarkets where Ritchies get a free Herald Sun if they spend more than $30 in Ritchies.

It frustrates me that News Corp. does deals like this and others with supermarkets yet they ignore retail newsagents. Two years ago the company made considerable noise that it had plans to drive sales of its newspaper products in newsagencies. They have done nothing – unless I have missed it.

The average newsagency is finely balanced, layered in its reliance of traffic and revenue sources with each stream of the business relying on the other. Every customer encouraged, lured and bribed to change their habit to a purchase elsewhere is a loss not only for that purchase but much more and a loss not only for newsagents but other suppliers such as magazine publishers and card companies.

I think this Ritchies campaign is ill-conceived and unfair on distribution and retail newsagents. It looks like a pitch from people who do not understand print media and the role Australian newsagents play.

Here is what one newsagent directly affected wrote yesterday to News Corp. about this promotion:

I am gob smacked at the narrow minded attitude your company is taking with these types of promotions. They are designed purely to hurt my Retail Market. Supermarkets do enough damage on their own without you guys handing things to them on a platter!

You come into my office and tell me how News Ltd is so focussed on improving the retail strategy with newsagents, how focussed they are on increasing sales with newsagents; it seems to me that is a load of bollocks!

This promotion is solely intended to take customers away from newsagents and hand them to the supermarkets on a platter!!

I disagreed and made formal complaints when you told me about the “trial” offer for News Ltd to control supply of my Ritchies store; nothing was done. It was plain to see that you never had any intention other than to take control of the Ritchies account.

I complained when you stuffed the supply figures up at Easter and I requested that the supply control was given back to my store; I know the seasonal data, you don’t. Nothing was done. No communication or feedback was given from News Ltd, you just continued with the status Quo!

Now some numb-nut sitting in an office thinks “oh hey, how can we screw newsagents over even more”………..and the above promotion is the answer…..sheer brilliance from your marketing team.

You write “An exciting promotional offer has been developed to introduce more readers to The Herald Sun.”, You’ve simply developed a way to take customers away from my store, decrease my basket size, and impacted heavily on MY cash flow by giving a newspaper away for free…………I don’t see anything exciting about it!

This mentality of giving stuff away for free must stop! You have a respected brand that people will pay for; bastardising the product simply to increase your supply numbers is far from brilliant!

You failed to discuss this issue with me which reeks of pure arrogance; I guess you would have known what the response would have been from newsagents!

No mincing of words there. Good on him.

It’s actions like this from News that encourages newsagents to put newspapers to the rear of the store and then to put them on a lower shelf – a slide to newspapers ultimately exiting newsagencies. We can get off this slide if News Corp. employs people who understand print media and who respect Australian newsagents.

If you wrote to News, publisher your comments here. Where do you stand?

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Ethics

The Tatts barrier to selling your newsagency

If you have tatts in your business and are planning to sell you will need to factor in time for tatts to go through their processes. Not only do they take time to vet and approve applicants, there is the real risk that they could say no.

It surprises me when I hear of Tatts saying no to someone approved by their bank for a business loan, the landlord for a lease, magazine companies for magazine supply and other suppliers for product supply. It’s happened before and I am sure it will happen again.

It would not surprise me to see a newsagent taking Tatts to some tribunal to challenge their process when they knock back someone the vendor newsagent feels should have been approved.

My own experience is that the Tatts process differs based on your connections. They are not transparent. They appear to use unnecessary hoops as a barrier to entry, causing you to spend time that could be better invested in helping to kick-start your new business.

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Ethics

Why I offered no goodwill and 75 cents in the dollar for stock to purchase a newsagency

I was approached recently to consider purchasing a newsagency which had been on the market for a long time. The owners were in dispute and wanted out urgently.

The figures provided were what I’d call creative. While I could see the business was losing money, a first time business buyer might have seen otherwise given how then information was presented.

The shop itself looked good, the shop fit quite new.  But it was old school. It would have looked relevant in 1980 but not today in 2014.

The business had lost one magazine distributor direct account. The stationery department looked okay but tired. the card department looked the best.

With plenty of the stock old and given the business was losing money I said I was not interested.  When pressed I said if I was to make an offer it wold be based on no goodwill and a payment of around 75 cents in the dollar of the wholesale cost of the stock. I said this knowing the business $50,000 in new stock and around $50,000 in replacing fittings – just to get started. So there was no point to me in rewarding the vendor for their poor management and poor decisions.

It turns out the vendor was told what I would pay – even though it was not an offer and was only mentioned in a highly conditional way.

The business has now been sold for a higher price than I would have contemplated. That tells me the purchaser has paid too much. The question on my mind is – has anyone told them they paid too much for the business?  If not, they will experience sticker shock within three months of settlement.

Those of us in the newsagency channel for the long-term owe those coming into the channel honest advice.

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Ethics

Health checks from Woolworths?

The announcement today that Woolworths intends to offer free heath checks is another example of why we need legislation to stop the growth of the supermarket duopoly in Australia. Indeed, politicians need to legislate to force a reduction of their market share.

Bob Katter was on TV tonight listing the businesses closed brown by the supermarkets. He included newsagents in his list. While I Tweeted Bob () to say we’re not dead yet, newsagents and every other small business owner in Australia needs to lobby their local politicians to call for legislation reining in Coles and Woolworths.

Enough is enough. We have to fight for our businesses, our families, our employees and ur communities.

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Ethics

Sell locally-sourced products and prove your pitch to the local community

theatre showIf we are to promote a shop local pitch to our local communities we need to source locally made and locally connected products. This week I will draw attention to several local suppliers newsagents could consider. Stocking products from these and similarly local suppliers adds credibility to our shop local pitch. To me, local products are products made and / or designed in Australia. If my newsagency was in a country area my focus would be more on products sourced even closer to home.

Just Kiddin is a Melbourne based company run by a talented designer who sells her own designs in the form of tents and other products for kids. Their tents are terrific: easy to display (hang them from the ceiling), well packaged and of high quality. While major retailers have cheaper products, the Just Kiddin tents are seen by shoppers as far superior. In one of my newsagencies we have sold more than 60 tents in the last year – that’s close to $6,000 worth. They are a good fit with newsagents who sell toys, cards for kids and kids magazines – yep, just about anyone.

I first found the products at the Home and Giving Fair in Melbourne. The business owner and product designer was on the stand offering excellent insights into the products.

Just Kiddin has been a newsXpress preferred supplier for quite some time. They will sell to others.

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Ethics

News Corp deal makes Coles look cheap and newsagencies look expensive

appalling-insideoutNews Corp’s Inside Out magazine is on sale at Coles for $6.00, $2.20 less than the price in newsagencies and other retail outlets.

How is it that this News Corp. title can be sold to shoppers at Coles for less than newsagents pay for it?

Why would newsagents not early return all Inside Out stock right away in protest at this deal?

One of my newsagencies is directly in front of Coles. This deal makes us look expensive. It plays into the Coles advertising that they are driving prices down.

I’d love to know if there is a deeper deal between News Corp. and Coles that could see other deals that make newsagencies look expensive to what Coles offers.

Once you consider this Inside Out deal and last week’s Woman’s Day deal, supermarkets certainly have newsagents in their sights and some suppliers appear willing to play with them. We need to remind these suppliers that we are a strong national channel.

Other newsagent suppliers note: resist pressure from Coles to join them on the race to lower margin business. The more shoppers you turn away from newsagents the more you rely on the likes of Coles and think for a moment what that world looks like to you.

Note: I moved this post from yesterday to today to keep the issue in the spotlight.

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Ethics

Newsagency marketing groups / franchises and marketing funds

I’ve been asked a couple of times recently about marketing fees they pay to their franchise / newsagency marketing group and the obligations of the groups to disclose how the funds are spent.

One business owner told me their group, which operates under a franchise agreement, has refused to provide any visibility of marketing funds collected from members and how they have been spent. The group in question is collecting well over half a million dollars a year.

The law is clear on marketing funds for groups that fall under the franchise code of conduct.

Here is what the Trade Practices (Industry Codes – Franchising) Regulations 1998 says about this:

17            Marketing and other cooperative funds

(1)   If a franchise agreement provides that a franchisee must pay money to a marketing or other cooperative fund, the franchisor must:

(a)    within 4 months after the end of the last financial year, prepare an annual financial statement detailing all of the fund’s receipts and expenses for the last financial year; and

(b)    have the statement audited by a registered company auditor within 4 months after the end of the financial year to which it relates; and

(c)    give to the franchisee:

(i)    a copy of the statement, within 30 days of preparing the statement; and

(ii)    a copy of the auditor’s report, if such a report is required, within 30 days of preparing the report.

(2)   A franchisor does not have to comply with paragraph (1) (b) for a financial year if:

(a)    75% of the franchisor’s franchisees in Australia, who contribute to the fund, have voted to agree that the franchisor does not have to comply with the paragraph; and

(b)    that agreement is made within 3 months after the end of the financial year.

(3)   The agreement referred to in paragraph (2) (a) will remain in force for 3 years, and franchisees must vote, at the end of that time, in accordance with paragraph (2) (a), for the agreement to remain in force.

(4)   If a franchise agreement provides that a franchisee must pay money to a marketing or other cooperative fund, the reasonable costs of administering and auditing the fund must be paid from the fund.

If you are in a marketing group or any franchise group and contributing to a marketing fund, they have an obligation to report to you. If they have not been doing this you can report them to the ACCC.

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Ethics

Newsagents: beware scams

I’ve heard of several newsagents in the last few weeks being targeted by scammers. In one case it was an advertising scam where the caller asked if they wanted to continue with their charity magazine advertising – there was no magazine. In another case, a newsagent was contacted by a scammer posing to represent an energy provider.

It’s important your employees know what they can an cannot agree to on the phone. Be clear in the rules and avoid being hit by a scan. The ACCC Scamwatch website has excellent information on this. Be sure to look at the small busyness section.

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Ethics

An anonymous personal attack

I have received calls in the last 24 hours from several people who have received an anonymous note in the mail attacking me. Here is how this note opens:

Mark Timothy Fletcher – this is a message for you but since I don’t own a blog, this was my next best way to get my opinion out there for comment.

Mark Timothy Fletcher is a highly critical blogger of those who do not share his ‘noble’ views and usually have little scope to reply to his various attacks through his various blog sites.
As such I through a bailout approach was in order to allow you to judge my opinion of this man’s sordid business venture… I don’t think it likely he will put himself out for the judgement he casts on so many of us and our interests.

“Those in glass houses should not throw stones!”

(sic)

The little scope to reply comment upsets me in that all comments here are unmoderated except for the first comment someone makes. Commenters here themselves would know that the comments are unmoderated. While it frustrates me that such a false accusation is made, that it has been made speaks to an agenda of the writer.

If you receive this anonymous note please send it to me along with the envelope as it will help identify the source. Send to: Mark Fletcher 3A Lynch Street Hawthorn 3122 or mark@towersystems.com.au.

The note goes on to claim that I am the sole director of a business in Cairns – Head Office CBD.  This is true. An ASIC search will confirm it. I have mentioned this before in public forums.

Head Office CBD is an adult shop in Cairns, a retail business serving guys, girls and couples. The anonymous letter makes claims about that business which are false and misleading.

The only reason I own Head Office is to help a friend. They purchased the business a few years ago and for personal health reasons irrelevant here needed to urgently exit the business. At barely a few days notice I took the business on to protect their investment. Over time I paid them out and then put the business on the market – just ask Fritz Herscheid at Barrier Reef Business Brokers, he will confirm that he has been contracted to sell it.

Head Office CBD, in addition to being a regular adult shop, also offers access to a Cairns council approved male-only cinema lounge. The anonymous writer appears to be offended by this. I am not sure why as I’ve not sought to push this on them – they have sought out this information for themselves for their own purposes.

Head Office is a legitimate small retail business providing a lawful service which does more good for the community than if the business did not exist. Neither I nor the people who work in the business do not judge those who shop there or use the cinema lounge just as newsagents don’t judge people who purchase adult magazines or buy cigarettes. Live and let live is good motto.

The writer says they are personally sickened that these types of venues exist in australia (sic) let alone owned by somebody who likes to hold himself in such high moral esteem. I don’t hold myself in high moral esteem. I’m flawed. I’m human. Adult shops and male cinema lounges and other similar venues provide a valuable public service to people of all walks of life.

I am proud to say that under my leadership this has been a good, clean and safe business. It’s also been a profitable business providing work for local Cairns employees.

It’s odd that the note is written from a deeply personal perspective yet they writer refuses to identify themselves – leaving one to wonder about their personal convictions.

I cannot think of why the writer has written and distributed this note. My only guess is that it is a response to my Coming out blog post of May 22. I’d welcome their public comment here about it.

The lack of a comment suggests they do not have the guts to stand by their words.

In the time I have owned Head Office I have learnt things about retail, shopper theft patterns, remote business management and human nature that I had not learnt through other retail businesses I’ve owned.

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About us

The Australian plain packaging claims expose poor editorial judgement

Labor’s plain packaging fails as cigarette sales rise

This June 8 headline and accompanying article published in The Australian has been shown to be based on specious information as last night’s Media Watch program explained. Relying on respected government sources and tracking back connections between the journalist and the source for data relied upon to big tobacco the Media Watch report destroyed the report by The Australian.

With newspapers challenged for revenue, their best chance at a future comes from fearless and accurate reporting and not doing the bidding of businesses looking for an outlet for their spin.

While I understand big tobacco and those who support them and their spin (in newspapers, blogs and other outlets) the real story that matters is the health outcomes we all hope for of less people getting ill and dying from tobacco related illnesses. This public health issue is why we need fact-based reporting and not spin that serves the tobacco companies.

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Ethics

Coming out

Last week, a person working for me was asked by a newsagent whether I was gay. My colleague responded saying that the newsagent should ask me.

On hearing of the conversation I called the newsagent and asked if he wanted to ask me the question. He said he doesn’t care and has no interest in knowing if someone is homosexual. He was shocked that I asked him the question.

I first encountered homophobia in the newsagency channel in the early 1990s when I heard of several people working for a newsagency supplier telling newsagents that I was gay. It was being said to turn people away from me and my business.

I am sure others have stories of ignorance and vilification. There are far more important challenges we should be talking about than someone’s sexuality.

I am gay. If that is news to you – knowing it does not alter who I am, who I have been or who I will be. Knowing it does not alter my commitment to the newsagency channel, to newsagents, to their businesses and those who work in them.

For many years I chose to not be out. I was concerned for my young family and for my young business in the mid 1980s. From 1998 people working for me knew. It was not until ten years ago that I resolved to answer the question with yes if ever asked. No one asked so I didn’t tell. I didn’t see a reason to tell, I didn’t want to make it a thing.

Around eight years ago I was invited by a supplier to a major sporting event. The invitation was for two. The supplier rep was bringing their spouse. Taking a deep breath I told them I was gay. They were happy for me to bring my partner. We had a terrific dinner and enjoyed the wonderful sporting event. My sexuality and relationship status was treated as normal. It was an affirming experience and continues to be so in my mind.

I am writing about this today because there is at least one person using my sexuality in an effort to damage my personal reputation. As they engage in this they could harm the reputations of colleagues, employees, friends – all because they want to hurt me.

It shocks me that in 2014 in Australia there are still people who would think it is relevant or interesting to say someone is gay – or homosexual as it was put to one newsagent recently – to damage their reputation. I’d hope that the person saying this is more damaged than the person they are speaking about.

The newsagency channel has many gay people – owning newsagencies, working in newsagencies and supplying newsagencies. Their sexuality has nothing to do with the value and contribution they make.

We are all in this life together.

The rate of suicide by young Australians is an unreported tragic epidemic. The type of ignorant behavior I have written about here could be a factor in another taking their own life.

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Ethics

Is Supanews using its franchisees to compete with them?

supanewsbagSupanews head office supplies its franchisees with bags for shoppers. The only promotion on the bags is for the website:  www.supanews.com and note that this website is owned and operated by a Hong Kong business an that items at the site cannot be purchased through any Supanews retail store.

Besides the confusing message of what a shopper can access in a bricks and mortar store versus the website trading under the same brand (read the note at the bottom of the bag) is the question some Supanews franchisees are asking – is this our franchisor competing with us?

I am told that Supanews representatives have said they do not own the Hong Kong business that owns the website. In following the company registration trail to an accountants office in Hong Kong. While I can’t answer the question about ownership, if I were a Supanews franchisee I’d be taking steps to get clarity as to who owns the business behind www.supanews.com.au. I would also demand that the franchisor stop using my franchised business to promote a business off of which I gain no revenue.

Click on the bag to read the detail.

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Ethics

Officeworks calls the newsagency to check ink prices

officeworkspricecheckSomeone from the local Officeworks called my newsagency Saturday morning to price check a couple of ink cartridges. They said they had a customer there who buys ink from us and Officeworks wanted to price check because of their cheapest prices guarantee.

I was shocked when I heard the story from a team member who mentioned in passing.  I was more shocked, however, when the team  member told me they gave Officeworks our prices! They won’t do that again now they realise what happened. I have ensured we have a policy that all team members are aware of regarding price checking now.

But back to Officeworks. talk about lazy marketing. They don’t advertise the lowest prices, just that they will undercut anyone else. Our small business newsagency goes out there with genuinely competitive ink prices, generating good interest and Officeworks stands on the sidelines saying they will beat our low prices – if customers ask.

I bet most Officeworks customers do not ask to compare prices.

It is cheaper for Officeworks to spend big on general advertising of beating prices than advertising genuinely low prices. I think they do this because they think shoppers are suckers when it comes to pricing and that they will think because Officeworks advertises the price comparison they must have good prices to start with.

Officeworks is expensive for ink! I think their calling businesses like newsagencies to price compare is unethical.

This experience makes me want to work smarter and harder competing with Officeworks.

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Competition

This card is not pornographic

cardsaspornWhen a customer placed another card from front of this one in the photo on Saturday I thought it was in error so I put the other card into its pocket. The same customer a couple of minutes later randomly picked a card and put it in front of this one. I asked why and they said because it’s pornography. I explained that many customers thought the card was funny the customer said I don’t care and walked out.

Another customer who saw what happened laughed and briefly clutched my arm – in comfort I think.

I’ve thought about both interactions a bit since it happened. Beyond the reminders that we serve a broad cross section of people in our shops and that our shops are public places, I have found myself questioning the ethics of what we sell.

I have no issue with this card. Indeed, I think it’s hilarious, and certainly not pornographic. But if someone does think it is pornographic then what do they think of other things we sell and what do they think of the business as a result?

While I don’t want to pander to fringe or extreme views, it is worth thinking through – to know where you stand.

I also wonder if this customer from Saturday is the person who slips Picture on the side so it can’t be seen? Are they the same person who covers DNA magazine? because someone does these things.

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Ethics

Evidence important in claims of newsagency sales success

Newsagents and suppliers often claim success without providing proof supporting their claim. There have been instances in our channel where newsagents have believed a claim without seeking evidence and gone on to discover that there was ho evidence and that the claim was false.

Everyone wants success. Unfortunately some want it bad enough to spin or lie to get their success – often at the cost of newsagents and others they serve.

Nothing beats the truth, especially the truth in sales data.

As I wrote recently, sales of our everyday counter cards, a card segment that accounts for 56.90% of our overall card sales, are up 17% year on year comparing January through March 2014 with the same period in 2013.

This is an extraordinary result.

Unfortunately, word has reached me that someone is putting it about that the figure is made up.  It’s not made up. I can provide the growth back to source data, data that anyone is welcome to audit.

So, it is true. Our every day (birth through death) counter card sales are up 17% year on year. We did this without a major advertising campaign and off an already good sales base. We also did it without a VIP loyalty points program.

Our success is in part due to our front-end loyalty program, discount vouchers. By giving away under 1% of card revenue we have achieved a stellar year on year increase.

In fact, the growth we have achieved puts us, I think, in the top group of newsagencies in growing card sales.

In someone claims to you that they are achieving extraordinary growth, ask to see the report that shows this. satisfy yourself that the claim they make is true. There are some in our channel who pay little regard to truth and, sadly, newsagents follow and make bad choices as a result.

Data does not lie.

9 likes
Ethics
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