Read Mark Colvin’s excellent Andrew Olle lecture
I urge newsagents to read the edited version of the Andrew Olle lecture delivered Friday night by Mark Colvin, respected journalist and presenter of ABC radio’s flagship PM program. Colvin gets to the heart of challenges facing journalism and media outlets, he talks about facts and truth … and makes a lot of sense. The last paragraph sums up the core message:
If we want a world where journalists can be paid to tell the truth we have to negotiate these massive changes at the same time. Good journalism – journalism of integrity – is a social good and an essential part of democracy. We have to do everything we can to try to preserve it.
South Australian government fails to support small business
The South Australian government has signed a contract with two multi-national stationery suppliers, ignoring an opportunity to support small businesses like newsagents. The ABC has the story.
I don;t know why I am surprised that a politician fails to support small business. This is how it’s been in Australia for decades with successive state and federal governments. They have been quick to say how important small business is and slow to back their words with action.
Labour, Liberal and National Party politicians have consistently failed small businesses, like newsagents, in Australia. Yet we vote for them. More fool us. If we were serious about wanting governments to support small business, as our core issue, then we would lead a campaign across our counters at the next federal and state elections. We won’t, however, because we will prefer to complain than to actually do something about chaning the situation.
Shame on you South Australian government, shame. This is a socially irresponsible decision.
Okay, so what should government do? If they support Australia as they often say they will, they should be required to support Australian businesses ahead of others and small businesses ahead of others. These requirements should be mandated in a way that is fair for taxpayers.
My sense is that small businesses are more likely to invest in local communities. The knock-on economic benefit of governments proactively supporting small business would / cold be considerable.
The politicians, however, will only support small business if it is in their interests to at the ballot box.
Fair Work changes welcome but not enough
The changes announcement by the federal government today, introducing a 21 day limit on the lodging of an unfair dismissal claim, while welcome are not enough. They do not take us closer to a more productive and economically balanced cost of labour.
We need to find a balance between what we have and the old Workchoices. We also need an employment structure that makes Australia and its businesses more competitive.
On the 21 day limit, this would have stopped one person I know of from lodging a claim three months after leaving employment of their own free will.
Has Rupert Murdoch jumped the shark?
I think Rupert Murdoch has jumped the shark and here’s why:
Overnight, Rupert Murdoch tweeted that some of the victims of phone hacking undertaken by his News International were scumbags.
Charlotte Church, Hugh Grant and Jacqui Hames met with British Prime Minister David Cameron. The meeting was announced, its purpose public. Rupert Murdoch tweeted:
Told UK’s Cameron receiving scumbag celebrities pushing for even more privacy laws. Trust the toffs! Transparency under attack. Bad.
This is a bit rich coming form someone who presided over a company that was ultimately responsible for systematic hacking of the phones of the three and many others and a company that secretly courted favour with British politicians, the Police force and others.
Everyone who was responsible for the phone hacking, the cover up of the phone hacking, the cultivation of secret relationships with politicians and the police force … they are the scumbags.
Labelling Charlotte Church, Hugh Grant and Jacqui Hames as scumbags is an indicator of the decline of Rupert Murdoch.
Using Lance Armstrong’s disgrace to sell magazines
The media coverage for the disgraced Lance Armstrong has been extraordinary this past week thanks to the 200+ pages USADA report into the systematic doping of the US Postal Service racing team under Armstrong’s watch. Ultimate Cycling Australia has the Armstrong story as it’s cover story so it made sense to use to give it prime positioning with our bike titles.
Big W disrespects quality calendars
Big W is showing that price beats customer service and any other reasonable value proposition by discounting quality brand-name calendars by 35% months out from the New Year. While I understand that discounting is the point of difference for Big W, they don’t apply a similar discount to some of the junk they sell – cheap products from overseas on which they can whack a terrific margin and still offer them at an apparent discount.
Suppliers should see this – that Big W discount, from what I can tell at least, brand name products more so than it’s own stuff. I guess this is because consumers can;t easily price compare their own stuff.
The way for us to compete with this predatory pricing – and that’s what it is with 35% of 2013 calendars this time of the year from such a big retailer – is to leverage a point of difference. Those newsagents directly affected by this Big W move need to promote calendars in a competitive way: a package deal, a competition with each calendar bought going in the running, a buy this and get that deal or a discount coupon given with each calendar purchased.
Another way to compete is on range – check out the Big W range in the store near you and focus on your range point of difference. This is our approach. calendar sales already this year are up 15% on this time last year and we’re not discounting. We will not discount prior to the start of 2013.
It might be worthwhile complaining to the ACCC about the Big W calendar pricing too.
Blackhawk VISA cards suspended
Touch Networks has advised that effective immediately, the sale of Blackhawk supplied VISA cards has been suspended due to fraudulent activity. Here is the announcement:
Blackhawk VISA gift cards have been suspended
Due to some recent fraudulent activity Touch Networks has suspended all Blackhawk VISA gift cards until further notice.This means that any VISA gift card that has been sent to you from Blackhawk cannot be activated for sale.
What to do with VISA gift cards:
DO NOT THROW OUT YOUR VISA GIFT CARDS!Touch Networks is working with Blackhawk to find a solution to remove fraudulent risk from both businesses.
Touch Networks will contact Touch Merchants in the next 7 business days to confirm if these VISA gift cards will be re-enabled through your Touch enabled device.
In the meantime, please REMOVE ALL VISA GIFT CARDS ON DISPLAY and place them in a secure location.
Touch Networks sincerely apologises for the inconvenience this is causing your business.
We hope you can appreciate our position and we are using best endeavours to resolve this serious issue ASAP.
If you have any questions regarding this, please email support@touchnetworks.com.au
The newsagency association conflict
I was talking with a new newsagent yesterday and they were surprised to learn that their local association owns 50% of Newspower in their state. An association representative had been providing advice to them on the selection of a marketing group. They had not declared a conflict of interest for the association with their half ownership of Newspower.
Associations need to declare their shareholding in Newspower to anyone they pitch or discuss Newspower – otherwise those receiving the advice may not have all the facts.
Whether they like it or not, associations are businesses and need to act open and ethically – as all suppliers should act.
WARNING: Ukash scam
Newsagents are being called today and have been called over the weekend and asked to print our a Ukash voucher. Some callers say they are from ePay. This is a scam.
- Never print out a voucher.
- Never give over a voucher to anyone unless they have paid you for it to the full face value.
There is a good Tumblr site with more about Ukash and related topics such as scams.
It’s tough when you are competing with your supplier
I was doing some research last night on the Mont Marte art supply range using their website to check out nearby stockists. I searched using several postcodes and each time Art Shed Online in Moorabbin came up in the search results first, listed as a partner.
I decided to widen the search from some Victorian postcodes into New South Wales and Art Shed Online in Moorabbin came up again – even though I asked the Mont Marte website to search for outlets within 5km of each postcode I entered.
The reason for Art Shed Online is listed first in these searches is that it appears to be owned by Mont Marte. That’s the inference from the website setup details at least.
While I have no quarrel with Mont Marte selling direct, I would prefer their website to take a fairer approach in listing stockists. Putting their own outlet ahead of their customers is unfair.
Suppliers should put their customers first, ahead of any direct sales outlet they establish.
I like the Mont Marte offer. I don’t like how they manipulate the search results on their website and treat their customers as second class citizens.
Beware of Ukash scam call
There is another scam being attempted against newsagents around the Ukash product. I have heard from several newsagents over the last two days about this. The caller says they represent ePay and they want the newsagents to do some things for them relating to Ukash. ePay is not requiring such calls to be made. This is a scam. read more here on other Ukash related scams which have affected newsagents.
Inaccurate claims on XchangeIT by Access POS
The Access POS software company has published a claim that it is the only software company with 100% XchangeIT file integrity. The claim is misleading in my in that it does not reflect all compliance measures tracked by XchangeIT. It is claim that XchangeIT has been asked to approach Access POS to withdraw . Besides the inaccuracy, software companies are under confidentiality with XIT.
I know a bit about XchangeIT standards as my newsagency software company, Tower Systems, participated in developing the file structures and standards at the heart of newsagent EDI, the structures and standards on which XchangeIT standards are based.
With more than 1,800 newsagents as customers, Tower Systems has 1,000 more newsagents using its software than any other software company. Access POS is trying to make out that they are bigger and better than they are. I respect the 90 or so newsagents using their software but note that size will matter as the newsagency channel consolidates.
Consolidation is one of the reasons I purchased the NewsPOS software business. Access POS claims that the NewsPOS business is closed. It is not closed – NewsPOS newsagents continue to use the software, they get support … nothing has changed except for the ownership of the company. AccessPOS knows this.
Things can get feisty between newsagency software companies. I’ll be in court in a few weeks defending action brought on by POS Solutions in which they complain about why and how 200+ of their newsagent customers came to switch to Tower Systems.
I stand by every claim I have made about my software and my software company.
When a newsagent underpays employees
An employee of a newsagent called me last week to ask about the $15 cash in hand they receive from their newsagent boss for their Sunday shift. They knew they were being underpaid and wanted to strike out at the newsagent. I told them to go to the authorities.
Besides underpaying this employee, and reportedly others, the newsagent was skipping on workers compensation, superannuation, possibly payroll tax and not maintaining accurate accounting records for when the business is sold.
While I am not thrilled to be paying an adult employee in my newsagency around $40 an hour for Sunday, it’s the law.
Newsagents not paying the award deserve what they get.
Respecting confidentiality
Thanks to the high profile of this blog, my work with newsagency software company Tower Systems and my work with newsagency marketing group newsXpress, plenty of information is shared with me on a confidential basis both formally and informally. I appreciate the insights I am given and the opportunity to discuss these with those sharing the information.
I don’t publish that which I am asked to keep confidential – even and especially where to publish some confidential information would be commercially advantageous. To do so would be unethical.
I mention this today because I want my position on confidentiality on the record for today and in the future.
Damning phone hacking report in the UK
The House of Commons Culture, Media and Sport Committee report into News International and Phone-hacking is challenging for News Corporation. Click the link to download the report.
The committee finds that Rupert Murdoch “is not a fit person to exercise the stewardship of a major international company”. However, the committee was split along party lines.
It will be interesting to see where this goes from here. While the terms of reference are quite different the report from the Leveson inquiry will probably carry more political weight than this committee report. That said, this report presents challenges for News around the world.
A tough day at the office for the Murdochs
The coverage in the media of James Murdoch’s appearance before the Leveson inquiry yesterday is most comprehensive in The Guardian. Click here to access the coverage. Is suspect that the newspapers back in Australia won’t have as much coverage. This is a massive story in the UK and it is growing in coverage in the US given the possible legal implications there.
Yesterday we got the closest look ever at evidence which may suggest political favours in return for endorsement of a political party by a newspaper publisher.
Watching some of James Murdoch’s testimony live on TV I kept wondering what might have been had there been no cover up following the original phone hacking claims. I also wished that some answers were clearer, more certain.
This story has a long way to go. It is deeply relevant to Australia given the campaigns that have run is some News Limited newspapers. Some of these campaigns in some of the newspapers reflect poorly on the journalism profession and the role which newspapers used to play in informing the public with fair and balanced reporting.
Some commentators say it will ultimately lead to the divestiture of print from the News organisation. Who knows?
I got to read a bunch of British newspapers today and found myself coming back to The Guardain and wishing what we had a newspaper like that in Australia.
Ethically impaired newsagent suppliers don’t deserve our support
I am disappointed by practices I consider to be ethically questionable by several newsagency suppliers, practices where the suppliers have made promises they have not kept. Practices they knew the newsagents involved would most likely not take legal action on.
These product suppliers, not distributors, have got away with letting newsagents down and we, those of us who have seen their behaviour, have let them get away with it.
I will not name names here because two have threatened this.
If I won’t name names why mention it? Because I am frustrated that we let these people put on a fake smile , sometimes pass out a bit of money to cover up their misbehaviour toward others in our channel.
While it would be impractical to create and police I would love to see an ethical newsagency supplier tick awarded to indicate suppliers who have met and continue to meet criteria set and judged by newsagents , newsagents with no conflict or perception of conflict, newsagents not involved in industry politics.
So what am I doing about this? I have closed my account with two suppliers. With a third it is not that simple because of how their products come to me. I’m working on that.
I note that suppliers I am writing about would vigorously argue that they have done nothing wrong and that they have simply focused on growing their respective businesses. I suspect that some newsagents would agree if presented the facts. I see it differently. I expect people to be true to their word.
The purpose of this blog post is to raise the issue of supplier ethics and to encourage newsagents to consider this when selecting suppliers they support.
Small business tax change could help newsagents
I like the idea of the small business tax change apparently being considered by the federal government and covered in the weekend’s newspapers. It could be particularly useful to newsagents when undertaking considerable investment in the business, such as a shop fit.
I note that some in big business have complained about the fairness of tax help for small business being funded by big business. Hmm. The TV networks, car makers, many major manufacturers, miners and other big businesses are regularly helped by government with funds taxed from small business.
Sunday management & marketing tip: learning from the Ben Polis situation
Ben Polis has had had a rapid and damaging fall following the outing almost two weeks ago of offensive posts he had made on Facebook. His former (he sold his shared after quitting) business, Energy Watch lost suppliers and customers and was dumped as major sponsor for the Melbourne AFL team. There are questions as to whether it will even survive.
The Ben Polis story is a reminder that each of us who leads a business is central of the brand of the business. What we say directly effects the business and how people perceive the business.
Some newsagents have used this to great effect, building their personal brand in their local community and, though this, the brand, and success, of their business. Others have missed the opportunity and therefore missed out on some business.
Living and breathing your brand in your community, whether it be geographic or congregated in some other way, is vital in today’s marketplace. I say vital as people are more connected than ever before. This means that how we live goes beyond our home and our street, it gores to our Facebook posts, Tweets and comments published by us and about us by others on all matter of social media sites.
There was a time when a business leader had to behave at the local pub and in the local shops. Now, scrutiny is 24/7. This is a good thing as it means that we need to live authentic lives, lives which genuinely reflect what we stand for in our lives and our businesses.
This is where we can learn from there Ben Polis situation. It is a reminder that we need to be authentic 24/7. This builds trust and respect and from these comes loyalty and loyalty is key to the success of any newsagency.
Being authentic means being true to our brand and what it stands for 24/7 – in Facebook posts, Tweets, everywhere. But it goes further. You can use these social media outlets to more publicly define yourself and your brand and thereby help more people find you and your business. But to do that you need to be certain of your brand and what you stand for first.
I don’t feel sorry for Ben as he said what he said and has faced the consequences of his actions. This is as it should be.
If the newsagency you lead is not a leading business in your town, on your street or in your shopping centre then it should be. This should be a goal for you. You need to be out the front of the business leading it to this situation. By living a committed and authentic life which speaks to the principles of the business.
Get this right and it could / should differentiate your business from others. If shows you off as being more valuable to your community than, say, a major retailer who ships profits out of the town or even overseas. If shows you as understanding the local community and reinvesting whereas others just advertise they do it.
But it has to be real. This is where what you say is how you have to live. Otherwise you could be outed like Ben Polis and your business suffer as a result.
More challenges for News Corp.
Newsagents who have not done so today should read Neil Chenoweth’s extensive report in the Australian Financial Review today about News and Pay TV piracy. You can see part of the story here.
Beware the Magazine Vending
Magazine Vending (Vending Locations Australia Pty Ltd) is offering magazine businesses for sale based around selling magazines through a vending machine. Their franchise opportunity marketing indicates a supply arrangement through ACP Magazines. While their ad at Trading Post does not name ACP, they certainly hint a relationship. However, I have been told that the supply contract associated with ACP titles has been terminated.
The ACCC has started asking questions about Magazine Vending.
I understand that at least one legal challenge against the business has been launched.
Anyone considering taking on a magazine vending franchise should undertake thorough due diligence into the business, their purported suppliers and their principals. The due diligence will get you further information including accessing a blog post with plenty of comments about magazine vending.
Anyone who has a complaint in relation to Magazine Vending should raise the matter immediately with the ACCC. The Enforcement Operations office out of Western Australia is handling the matter. Fax: 08 9325 5796.
For newsagents there is the other issue of why put magazines into a vending machine. Magazines are available more widely in Australia than any other country. Why dilute sales for retailers supporting the product?
A remarkable day for News Corp. at Leveson Inquiry
Newsagents should check out the comprehensive report from The Daily Mail on the developments at the Leveson Inquiry in London. You won’t see this detail on the culture of illegal payments to public officials in the UK in News Limited newspapers here. Publishers wanting freedom of the press and protection of sources cannot behave in this way.
News Limited in crisis on newspaper home delivery
There is a crisis gripping News Limited on the future of newspaper home delivery in Australia. My understanding is that there is disagreement between circulation executives in some News Limited state offices and their bosses at Holt Street in Sydney on the future model of newspaper home delivery and whether newsagents are part of the model.
The crisis in had its genesis in 2009 when somewhere between 100 and 300 newsagents handed their newspaper home delivery businesses back to News, claiming that they were not financially viable.
The company responded by saying that it would undertake a major review of newspaper home delivery. At around the same time they implemented what was called the migration project in South Australia whereby they took control of newspaper account payments by home delivery customers, even those directly won by newsagents. This cut customer traffic to some newsagencies as accounts could be paid through News rather than the shop. News also took delivery of newspapers to key hotels and some hospitals away from newsagents, they pushed their newspapers into alternative retail outlets such as coffee shops, did deals where newspapers were included in fast food meal deals and began a campaign of engaging with advertisers resulting in massive numbers of newspapers being given away at sporting venues, fitness centres and cinemas.
In short, News Limited responded to newsagents quitting newspaper home delivery by doing everything except working with newsagents on an alternative model. News executives will say that I am wrong and that they did engage with newsagents on an alternative model. I know what they did and would not call it engaging with newsagents. It was as if the company had a plan and they needed to ‘engage’ so they could tick a box and say they had engaged if asked.
My understanding is that today there are several News Limited executives in some parts of Australia in strong disagreement with the direction being taken by the company out of Holt Street Sydney. Some of those executives remain silent for fear of their jobs.
Whereas for decades News Limited left its state based newspaper silos (Herald & Weekly Times, Advertiser Newspapers, Queensland Newspapers etc) to control the management of newspaper home delivery, now all decisions around newspaper home delivery come out of Holt Street. The decisions are delivered by the state silos but they are decisions out of Sydney.
Some in News want home delivery management to revert to the states where managing relationships was easier and, usually, more successful for the newsagent, News an the customer. Others in News want the company to break free from newsagents and move to a fresh model. My understanding is that News has financial models of an alternative indicating that it is not financially viable, that they could not engage contractors prepared to deliver newspapers by early morning for a few cents remuneration each.
Just over two years ago News Limited told newsagents that they were undertaking a review of newspaper home delivery and that newsagents should expect changes. News executives told newsagents that they had three options: do nothing, consolidate or specialise. Newsagents were told that to do nothing was not an option.
Last week, News limited told newsagents that they were going to do nothing. I am told that this has shocked some in News Limited state offices.
One school of though is that the plan the company had is not financially viable and now they need to find a way to appease newsagents without letting newsagents increase the fee for delivering newspapers to rise to anything close to what would be necessary for it to cover newsagent costs.
This is the crisis in the company. One group wants to deal with newsagents equitably and continue the newsagent managed home delivery model. Others want to cut newsagents loose and strike contracts outside of the traditional newsagency model. I’m told that the dollars don’t support the latter.
News Limited controls the key levers which determine how much a newsagent delivering newspapers makes – they set the gross margin from the delivered product, the delivery fee charges, what can and can;t be delivered with the newspaper, the frequency of payment and how the newspaper is to be packaged for delivery.
By any measure, many newsagents are the working poor, often making just a few dollars an hour for work which often starts at three or four in the morning and runs through until six at night – following a model created and controlled by News Limited. While News is not responsible for this complete picture, it has been a key player for decades and in that time has resisted many moves for fair and equitable remuneration for newsagents.
News Limited should engage in a mutually respectful business discussion with newsagents on the future of newspapers and newspaper home delivery. This should be a serious discussion pursuing a mutually beneficial outcome. News executives need to trust newsagents when they say that they will not lose customers if the fee for the home delivery of a newspaper increases. Newspaper readers are prepared to pay closer to the real cost of the service. Addressing this price anomaly will create a mechanism through which the medium term future of newspaper home delivery by newsagents can be assured.
Newsagents with a newspaper home delivery component to their business need to engage on this issue. They need to sort out what they want and go for it. Doing nothing is not an option.
For background reading, check out:
- News Ltd newspaper home delivery fee increase is socially irresponsible.
- News Limited cost cutting leaks.
- Proof of a sick newspaper home delivery model in Australia.
- At 920g is the Sunday Telegraph unsafe to deliver?
- Newspaper contracts causing distress.
I am in Sydney today meeting with newsagents on other matters. I am sure this issue will be raised. I understand the anger and frustration of newsagents. The only way to address this is through a unified and committed approach.
Some newsagents really suck
A small bundle of a title meant for one of my newsagencies was delivered to a competitor by mistake. It was clearly labelled. Plus they did not have the electronic invoice for the title. They unpacked it, put it on the shelf and sold out by they time we had sorted out with the distributor what had happened. This competitor newsagent does’t care about the situation.
Okay we are competitors. but to act in such an unethical way against any other business is appalling. I guess it is better that we know this about their ethics.