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Ethics

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.

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Ethics

Rupert Murdoch’s News Limited hurts small business newsagents with indecision

News Limited kicked off a project a couple of years ago around the future of newspaper sales and distribution. They presented newsagents with three options: do nothing, consolidate or specialise.  News Limited senior management made it clear that do nothing was NOT an option.

Yesterday, News Limited told newsagents that it was going to do nothing. The promised new newspaper distribution contracts are not coming.

Newsagents have been stressed through the process since the knowledge of a decision by News about such a key part of their business made newsagencies difficult to sell and difficult to access funds for.  Any bank manger will confirm this.

I would go further and note that the earlier decision by News Limited to force changes around newspapers has been a key factor in the considerable decline in the sale of newsagencies over the last two years.

Newsagents were dealt a blow yesterday when the company advised that it is not ready to provide newsagents with the contractual certainty which it had said it would provide. News Limited has opted to do nothing … leaving newsagents with a longer period of uncertainty. Promised new contracts are not coming. News is not saying how long for … things could not be more uncertain.

the VANA blog has more details on the meeting with News Limited yesterday.

This inaction by News Limited means that finance will be harder to obtain for newsagency businesses, newsagencies, especially those with a distribution component, will be harder to sell and capital investment in the distribution side more challenging to complete.

News limited created the uncertainty and the cost to newsagents by launching their review.  They are continuing it by their inaction.  This is not socially responsible nor is it ethical.

Newsagents have very right to be angry.

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Ethics

How the Occupy movement can really make a difference

If the Occupy movement really wants to make progress on economic inequality and social injustice then they should move out of Wall Street, and its equivalent, and engage locally. Shopping locally owned businesses, like your local newsagency, green grocer, butcher, baker and chemist will deliver more of a message here in Australia especially … where Coles and Woolworths control somewhere between 55% and 75% of grocery relates sales. Watch this video from the Hungry Beast team.

Newsagents should seize every opportunity possible to propose a shop local message.

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Ethics

St George bank cares less about newsagents

Just a few years ago St George Bank was crowing about deals for newsagents in a push to win over newsagents for EFTPOS processing.  Now, the bank is rewarding loyalty by increasing fees to newsagents.  Some EFTPOS related fees have increased 100%.  I am not away of any increase in costs to St George which would require a 100% increase in fees they charge to their customers.

Newsagents I have spoken with are voting with their feet, taking their EFTPOS business elsewhere.

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EFTPOS fees

Gossipy supplier reps should shut up

The newsagent supplier representatives who spread gossip as they go from newsagency to newsagency discredit their employers, those they gossip about and newsagents more broadly.

I heard of gossip last week that was not based in fact and was spread for the purpose of personal profit, with no regard to the reputations of those who were the topic of the gossip.

While I am sure that suppliers tell their field force to not gossip, it goes on and damage is done.

Those most often guilty of gossiping are those who visit newsagencies in a regular cycle and thereby develop a deeper relationship with newsagents and their staff.  Through their weekly cycle, gossip can spread like a virus.

For what it’s worth, the best response when a supplier representative says something about another supplier or a person is to ask them to prove it.  Of course, this is often not done because people do enjoy a bit of gossip … unfortunately.

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Ethics

Is faux marijuana about to be more available?

I was at a trade show in Melbourne on Friday where several versions of a product aimed at the marijuana buyer were on show.  While packaged more more discretely, the products reminded me of the Tripping Weed product I saw in New Zealand in October.  The vendors were looking for retail partners in a range of retail channels.

They say the product is legal.  It’s a grass which is sprayed with a chemical to help achieve the same results.  NZ regulations recently changed which has presented them with some challenges.  This is one reason they are looking at the Australian marketplace.

I would usually have ignored this product.  However, I remembered that Tripping Weed, not the product I saw on Friday but similar, was being sold at the counter of several mainstream convenience stores in downtown Auckland.

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Ethics

JB HiFi disrespects Australian taxpayers on GST move

JB HiFi is demonstrating its care, or lack thereof, for Australia by starting a grey import service of goods from overseas.  This service offers products which JB says are the same as what can be purchased from their stores.  The difference is that the products are shipped direct to the consumer from overseas, avoiding GST.

While JB will say that they have to do this to counter overseas websites selling into Australia, my take is that their initiative disrespects Australian taxpayers.  It dodges their obligation to support Australia, to be a good corporate citizen.

The JB HiFi move speaks volumes about ethics and social responsibility.  They are putting their profit goals ahead of the needs of Australia as a country.  they are doing this by pandering to greed – theirs and that of those who will purchase through them.

Yes, I want the federal government to address the tax anomaly.  However, I understand the challenges of achieving this in a cost-justifiable way as a recent Productivity Commission report discussed.

JB HiFi should work harder to address the issue of collecting tax on items purchased overseas and shipped direct to Australian addresses rather than joining others to deny vital tax dollars which fund schools, hospitals, roads and other federally funded infrastructure and initiatives.  Yes, this is a hard road.  Equity can be like that.  Imagine what life would be like if people always took the easy or greed route.

By helping, and even encouraging, Australian consumers to avoid paying tax JB HiFi disrespects us.

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Ethics

Appalling customer service from an arrogant Qantas

The decision by Qantas yesterday to ground its entire felt as its next move in an industrial dispute with several unions is appalling.  In a week when shareholders delivered a 66% pay rise to their CEO, the CEO and Qantas board have decided to disrupt and financially harm tens of thousands of businesses and hundreds of thousands of passengers instead of showing leadership by working through the dispute.

I don’t care for the excuses of Alan Joyce.  There is no excuse for disrupting business in this way, none whatsoever.

Joyce announced the grounding late on Saturday.  How are businesses supposed to respond overt the weekend to make over arrangements for Monday?  My newsagency software company usually has between six and ten people on return flights every week, myself included.  Our small business has been significantly disrupted.  We have extra costs.  Thanks Qantas.  Alan Joyce has his 66% and the bully boys of the board think they are making their point.  Makes me feel like they don’t care.

In my view, the point Qantas is making is we don’t like the game so we are taking everything and going home.  This is the sort of behaviour parents hope their kids grow out of.

The Qantas boards should grow up.  They should have realised the damage of giving their CEO 66% while refusing a fraction of this to others would create difficulties.

I have many clients and friends in the tourism industry.  They are gutted by this move.  Travellers due to arrive this week will not arrive.  These business are still recovering from the impact of cyclones and a tough economy.

Why Qantas would wreak a man-made tsunami on business, especially small business and the tourism sector, is beyond me.  Sure, they will say they are doing this for the good of the airline, to protect shareholder value.  I don’t believe that line.

I have no doubt that the unions lodged ambit claims.  They usually do.  Negotiations need to be approached with this knowledge.  That said, as a frequent flyer I want the people flying the plane to be happy and well paid as my safety depends on it.

My travel plans this week are disrupted and while I have been able to make arrangements with Virgin for two flights, I have two more flights which are proving to be a challenge to resolve.  The time spent already has a cost which I am sure Qantas will not are about.

Besides the disruption and cost to passengers and business, there is the damage to brand Australia.  My sense is that it will be considerable.

The Qantas action certainly leaves me wondering where this move fits in their longer term plans for the airline.  I also wonder if there is a political motive.

As a Qantas Platinum level frequent flyer I am appalled at the decision by Qantas.  I do not support it at all.

I notice that Alan Joyce has been in the media today with all manner of excuses including that they chose to ground the fleet yesterday, and not another day, for safety reasons.  Nonsense.

I’ll close with a quote from Ita Buttrose.  This is what she tweeted on twitter yesterday:

Leaders lead by example; Alan Joyce should have said no to a pay rise this week. Very disappointed in the Qantas board and its chairman.

Please excuse me for being off topic with this post.

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Ethics

How newsagents can act against email SPAM

Newsagents who receive unsolicited emails can complain to ACMA about such SPAM.  Under the Spam Act 2003,

it is illegal to send, or cause to be sent, unsolicited commercial electronic messages. The Act covers email, instant messaging, SMS and MMS (text and image-based mobile phone messaging) of a commercial nature.

Lodging a complaint about SPAM email is the best way to complain about your business email address being obtained and used for unsolicited emails.  Click here to go to the ACMA page for lodging a complaint.

The other thing I’d suggest newsagents do is emailing the spammer and letting them know that you are complaining to ACMA.

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Ethics

Coles school sports promotion rip-off

The Coles school sports promotion is a rip-off in my view.  According to a recent report in The Australian (Sept. 5 pg 8), shoppers need to spend $700 to earn enough points for a school to get a $3 (RRP) skipping rope.

I’d have parents from a nearby school spending less than $500 in one of my newsagencies in a year yet I happily give them products worth $50 for free when they ask.  This makes my small newsagency more valuable to the school than Coles.  Plus I don’t demand they shop with me.  I want that to occur naturally as it is more likely to stick if it does.

Indeed in each of my newsagencies we give a significantly higher percentage of revenue to community groups than Coles appears to with this promotion.

Why should I be surprised that small businesses do more for local schools and clubs than one of our giant supermarkets?  I’m not.  I think that the Coles campaign in purely profit driven and 100% cynical.  It sucks that shoppers buy in and think good on your Coles for doing this.

I don’t spend any money advertising the $50 I give the school either.  It frustrates me the tens and maybe hundreds of thousands of dollars is being spent advertising the promotion.  This should be given to the schools and not media outlets.  Coles should rely on word of mouth – if they were serious about helping as much as possible.

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Ethics

ASIC, the reserve bank and the federal government failed Australians on EFTPOS issue

Where is the federal government on the EFTPOS fees issue?  Nowhere.

Where is ASIC on the issue?  Nowhere.  I would have thought that ASIC could pursue ePAL for misleading conduct.  The still could I guess.  Will they?  Probably not.

Where is the Reserve Bank, the organisation which created the situation? Nowhere.

The federal government – especially Nick Sherry Small Business Minister and Wayne Swan Treasurer – has let retailers down.  They have ignored us.  When we wrote, they replied with noise and no substance.

The opposition was a little better but not much.

No, it was up to Aldi, a foreign owned supermarket group to fight the fight which government or its agencies ought to have taken on … representing small business retailers like newsagents.

Thanks to the Aldi action we now have some banks retreating and saying they will not increase fees for now.  We need to keep this pressure on … on the banks, on ePAL and on the politicians.

Who thought that putting the big banks plus Coles and Woolworths in charge of managing EFTPOS and setting fees was a good idea?

If Nick Sherry really cares about small business he would engage on this issue and actually do something.  Instead he spends his time making speeches telling retailers what he thinks they are doing wrong.

The Opposition would garner significant small business support if they came up with  an alternative plan on the issue of EFTPOS fees.  Rather than trying to kill the government, they could show alternative leadership on this issue.  It’s ripe for them to make a move and show that they can create positive plans.

All in all retailers have been let down by everyone except for the work of Aldi.

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EFTPOS fees

Aldi versus ePAL judgement

Click here to see the full judgment delivered by Justice Jacobsen of the Federal Court in the case brought by Aldi against ePAL, the EFTPOS payment scheme operators.

While the judgment represents a comprehensive win for Aldi in their complaint against ePAL, it does not stop the unfair changes to the EFTPOS fee regime which takes effect from next month.

Click here to read the press release issued yesterday by Tyro payments, the little guy in the battle against domination by the big banks plus Coles and Woolworths of EFTPOS processing in Australia.

Newsagents can fight back on this issue by switching off their bank EFTPOS terminals and switching to Tyro.  Tyro has already made a n announcement favorable to newsagents on their handling of fees once the new EFTPOS regime kicks in.

Disclosure: Through Tower Systems I have a commercial agreement with Tyro for the support of their platform in Tower newsagencies.

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EFTPOS fees

Does Officeworks profit from recyclable bags?

Further to my post earlier this week about Officeworks not offering the LOWEST PRICES EVERYDAY, I was surprised at their twenty cent charge for a shopping bag when I purchased too many items to carry loose.

When I queried the person behind the counter I was told it was okay because the money from the bags went to the Australian Wildlife Conservancy.  It turns out that only five cents of the twenty cents goes to this organisation, Officeworks gets fifteen cents.

On querying the fifteen cents Officeworks keeps for the bags the employee had no response.

The bags themselves are designed to promote the green credentials of the organisation.  They could better serve the environment by providing a 100% biodegradable bag … like I do in my newsXpress newsagencies without charging the customers a cent.  Customers love our biodegradable bags.

It feels to me like Officeworks hides behind the fund-raising pitch to make their bags a profit centre for the company.  Their stationery prices are not that cheap, they certainly have margin capacity for funding bags for shoppers.

Newsagents who provide bags for free, especially biodegradable bags, have something else they can pitch as a point of difference to Officeworks.

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Environment

Aldi wins in case against EPAL

Judgment in the case brought by Aldi against EPAL around their communication regarding the likely impact of changes to EFTPOS fees has been handed down this morning in Aldi’s favour.  EPAL has been required to publish corrective communication.  Costs were awarded to Aldi.

While this does not address the impact of the new fees levied by EPAL (big banks plus Coles and Woolworths), it does require a more accurate statement on the impact of the EPAL decision to raise fees.

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EFTPOS fees

Officeworks does not have the lowest prices every day

You’ve heard the Officeworks ads, they run on high rotation on TV, they are in the newspapers regularly, then there are the flyers in the letterbox and, of course, billboards.  The all proclaim that Officeworks offers LOWEST PRICES EVERYDAY.

Officeworks does not have the lowest prices every day.  Not the way I see it at least.  They get away with this claim by publishing a price guarantee, that they will better the price of any item by 5%.  Their website says that their price checkers guarantee that they bring you the lowest prices possible every day.  Hmmm, their price checkers cannot be all that good.  The Officeworks price for a pack of four check tickets is $4.53.  These checkers employed by Officeworks would know that the vast majority of newsagents easily beat this price by 47%.  Check the responses from newsagents on what they charge for check tickets when I asked the question this past weekend.

Newsagents don’t just beat the Officeworks price on check tickets, we beat them on a range of items every day.  It is us who should be proclaiming the lowest prices every day.  Instead, we would rather complain about Officeworks and them get away with it.  Instead of complaining maybe we should fight.

It’s a bit like the carbon tax debate or the poker machine pre-commitment changes.  If you make enough noise with your spin, regardless of how distant from the facts it is, you soon get it into people’s heads that what you are saying is accurate, regardless of whether it is accurate.  Spin wins.

Officeworks does not offer the lowest prices every day.  What they do offer is to beat any price by 5%.  The shopper has to find the better price and provide it to Officeworks.  Officeworks does not pursue delivering the lowest price as a matter of course.

I clicked on the social responsibility link on the Officeworks website as I figured it would have something to say about their commitment.  It didn’t offer much of substance.  Sure it was nice words, but nothing relevant to what I would call social responsibility  Then clicked on the ethics link – expecting that would speak to their commitment to honesty and integrity.  It, too, lacked substance in my view.  The stand out paragraph on the ethics page for me is:

Maintaining a culture of integrity ensures that our team members always act in the best interest of our business and our shareholders.

There it is.  Shareholders come first.  As a public company this is as it must be.

I suspect that Officeworks knows that it does not offer the lowest prices every day.  If they don’t, they should know this.  I suspect that Officeworks does not regularly price check against outlets like newsagencies.  If they do they need to lift their game.

The out for them on Check Ticket prices is that we do not offer a four pack.  I’d reject that saying that we would sell four packs for, usually, $2.40.  Even though they are sold individually, it is reasonable to compare the price of four individual packs with a single four pack and they have it displayed.

I’d like to see the Consumer’s Association or some other body challenge the Officeworks LOWEST PRICES EVERYDAY claim.  They spend a ton of money on the claim so they ought to be prepared to be investigated to ensure that it is accurate wherever and whenever it is made.

In asking the price of check tickets I intended to write a blog post about the need for newsagents to proclaim that they have the LOWEST PRICES EVERYDAY. Based on prices I checked of everyday stationery lines, such a claim would be accurate.  I wanted to write that we should be proud of our price position and that as an entire channel we should make noise about this to combat what I consider to be misleading advertising by Officeworks.

But my attention was diverted by what I found at the Officeworks website and the realisation that truth does not matter for it is perception which sways shoppers. Officeworks has the money, marketing and advertising experts necessary to drive perception.

Australian newsagencies are not as expensive as shoppers think.  We need to find ways to push back on that perception.

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Ethics

Does the Maxim cover go too far?

mags-maximcover.JPGA customer complained to me yesterday that the cover of Maxim magazine was pornographic and that we should not have it on open display.  He held his young son, probably around 8 years old, so he could not see the cover as he shared his feelings.

This is an example of there our magazine fixtures work against us.  In old wooden magazine fixtures two thirds of the cover would have been, well, covered.  Certainly the bit of the cover shot which offended my customer the most would have been out of sight.

I understand the concern expressed to me.  However, newsagencies are public spaces offering access to a diverse range of material.  We follow the law in terms of what we display.  I am not about to go beyond the law and unreasonably censor placement.

I;d be interested in what others here think – does the cover of Maxim go too far?

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Ethics

Aldi takes on EPAL over EFTPOS fees

Supermarket group Aldi has taken legal action against EPAL over its position regarding EFTPOS fees. The Aldi action centres on transparency of the EFTPOS changes being brought in by EPAL.  Click here for a copy of the Aldi media release on this matter.

Aldi would welcome hearing from any retailer with news of an increase in fees from their bank.  Please make email contact with Alex Richards here: alex.richards@aldi.com.au

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EFTPOS fees

Proof of a sick newspaper home delivery model in Australia

A newsagent colleague handed back their newspaper home delivery territory two years ago.  The distribution business was turning over in excess of $500,000 a year but was losing money and detratcing from the associated retail business.

The publisher appointed a contractor to replace the newsagent.  They handed the distribution business back after a year.

The publisher appointed another contractor.  They have just pulled out due to the run being loss-making.

The publisher has now taken on then run for themselves.  Maybe they will realise, like the three before them, that their unreasonable and socially irresponsible approach to newspaper home delivery is what is killing newspaper home delivery businesses in Australia.

Publishers cannot expect newsagents to carry an unreasonable share of the cost cutting which is driven by subscription and other deals.

It is unfair that newsagents work for below minimum wage when publishers increase advertising rates and protect their own position.

The story I have shared is playing out beyond this one location because we have a situation where publishers protect their income through advertising rates yet refuse to give small business newsagents an opportunity to achieve a fair income through newspaper home delivery charges.

This is why newsagents are handing back their runs.

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Ethics

Cheeky National Australia Bank

nab.JPGSomeone from the National Australia Bank visited one of my newsagencies on the weekend asking staff to place this flyer on the counter for customers.

For an organisation as controlled by processes as a bank, I am surprised at the casual, lazy even, way they expected us to be part of their marketing campaign.

The NAB charges for you to use their ATM, if you are not a customer did not offer us anything for helping them out.

We are not a NAB customer so there should have been a cost – following their fee logic.  It seems that they expect us to be generous with our time and space while refusing to be generous themselves.

And banks wonder why we don’t like them!

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Ethics

Ethics in retail

Just about every day in our retail businesses we face situations, from the complex to simple, which challenge our ethics.

It could be a miscalculation by a few cents in our favour to a supplier not billing for some inventory delivered to the discovery or a roll of cash dropped on the shop floor.

How we, as leaders in our businesses, deal with these situations sets the ethical framework for others in the business.

The newsagent who rips cash out of the business for personal spending can’t expect employees to not sneak cash out for their own purposes.

The newsagent who does not report the non invoiced inventory, maybe magazines, cannot complain about customers or employees who steal magazines.

The newsagent who takes stock for personal use can expect the same of others.

We need to embrace opportunities to show our ethical behaviour knowing that how we behave guides how others behave.

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Ethics

Courier Mail newspaper covers Daniel Morcombe front page story

coriermail-shame.jpgInsensitive.  Appalling.  Disgraceful.  Greedy.  Shocking.  These are just some of the words one could use to describe the ad for Woolworths stuck over a page one story about Daniel Morcombe in today’s Courier Mail newspaper.

What does it say about News Limited that it would rather take the money of a giant supermarket chain than give this heartbreaking story respectful coverage.   Oh, there will be excuses and explanations.  The fact of the ad stuck over the story is there for all to see.

News Limited ought to be ashamed of selling out to Woolworths and covering up this story.  The company should apologise.

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Ethics

Queensland newsagents face 100% increase in insurance premiums

Queensland newsagents have been shocked by the insurance premiums being charged for the next year.  Many have premiums which expire next month, organised through a QNF endorsed insurance broker.

If what I am told is right, a change of ownership of the broker has played a role in newsagents being hit with a 100% rate rise.  I expect that newsagents will flee the broker if this exorbitant rate rise sticks.

I don’t see any justification for a doubling of insurance fees, including the floods at the start of this year.  Insurance companies build reserves for such events so that they do not double rates the year after such an event.

I’d be interested in hearing what newsagents are being charge for insurance – I am sure others would too.

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Ethics

Cheapskate newsagency suppliers

I am disappointed in the number of newsagent suppliers who walk the floors of the GNS Market Fairs touting for business yet who have not stumped up the cash to pay for a stand. These cheapskate suppliers are not investing in the channel like those suppliers who have paid for a stand. Shame on them.

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Ethics