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Newsagent representation

VANA in conflict with ALNA as a result of commercial arrangement with MyLotto24

In a move set to further consume politicians and regulators and divide the newsagency channel, VANA, the association representing some Victorian newsagency businesses has endorsed MyLotto24, a business that invites punters to bet on the of lottery draws.

What are the directors of VANA thinking? Not thinking at all in my opinion. I get that they are excited y the percentage of commission from deposits newsagents take and the trail commission for online deposits from accounts they introduce and commission VANA will make if a commission has been negotiated. However, the future of most Aussie newsagency businesses is not agency business. The days of the agency are over.

The article published today by Fairfax raises a few concerns including this quote by Chris Samartzis, the VANA spokesperson, speaking about the ban to be considered in federal parliament:

“The unintended consequences of a blanket ban will only serve to erect a monopoly with zero competition in the market place.”

The monopoly was erected more than 100 years ago when states established their own lottery businesses.

There are other issues with the inadequately researched article by Fairfax such as the mention of 1,200 outlets but I’ll leave them for another day.

The Australian newsagency channel was healing. Actions in recent days by NANA and VANA have taken representation of newsagents back years. I question whether a unified approach is possible from this.

ALNA has run a strong national campaign on this matter and offered strong representation on other national issues, issues  beyond lotteries. It is unfortunate two small state groups try and grab attention from important issues of national importance for all newsagents.

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Ethics

ALNA responds on Lottoland pitch to newsagents

Adam Joy, CEO of ALNA, shared the following with me yesterday and I share it here with his permission.

The Australian Lottery and Newsagents Association (ALNA) has taken a considered approach to the public advertisements by Lottoland Australia Pty Limited, which have appeared in newspapers last week, and on radio this week, regarding their commissions proposal aimed at members referring bets and customers from their retail venues to the online betting company.

ALNA remains resolute that Lottoland’s offer to newsagents is nothing more than a desperate PR manoeuvre that uses newsagents as advertising tools for an unethical business that is facing the closure of the loophole that it operates out of. This is backed up by overwhelmingly positive feedback we’ve received from members across the country who support the government’s positive move to ban betting on lottery outcomes to protect Australian consumers.

Nonetheless, in order to protect and inform our members, and our industry more broadly, we have made inquiries with regulators in each jurisdiction you sell lottery tickets in, seeking clarification as to the legality of the offers being made.

In an opinion piece published in The Daily Telegraph on 17 April 2018, the CEO of Lottoland Luke Brill, peddled some desperate claims as it faces closure of the loophole that it operates out of. And since some of these comments are misguided, we thought it important to clarify the facts.

Luke Brill has called newsagents ‘the little guys’. This is wrong. While newsagents are small businesses, our industry is made up of over 4000+ newsagents, employs over 20,000 people, and generates an estimated annual turnover of $6 Billion. We are one of the largest independent retail channels in our community, and approximately 2.5 million Australians shop at their local agency every day.

As the peak body for newsagents in Australia, we wanted to clarify a few comments that were made about our industry. After all, we know newsagents better than this bookmaker, who is desperately trying to leverage our industry.

The ban that Mr Brill referred to is a soon-to-be-passed amendment to the Interactive Gambling Act, meaning the banning of betting on lottery outcomes. The Federal Interactive Gambling Act already makes it illegal to sell a scratchy online and play a poker machine online, and Lottoland’s business offering is another questionable model that is deemed inappropriate online. In other words, the main reason for the impending ban is consumer protection.

Lottoland are an online wagering company and if they want to enter the lottery market, then they should consider a lottery license and completely change their product to one that operates within those much tighter regulations to offer consumer protections. Their business is operating out of a legislative loophole and their approach is tricky and dodgy, and ultimately one that consumers should be concerned about.

In a last ditch attempt at survival, Lottoland has made an offer to newsagents where the newsagent would act as an advertising platform for Lottoland.

The majority of members have told us loud and clear that they do not want to associate with Lottoland. Their reasons are that Lottoland has spent years denigrating newsagents, they do not want to offer products that are not highly regulated and trusted, and it is not a good long-term strategy for their businesses to refer their customers and goodwill to an unregulated space.

Early indications about the Lottoland offer to newsagents also bring into question its legality and regulators are in the process of looking in to this.

Highly regulated products like lotteries tend to not have a huge number of suppliers, and this does not only apply to lotteries. Appropriate industry regulations that protect consumers in each jurisdiction they are licensed in, mean that new entrants can only exist if they fit within strict criteria. It’s actually a good thing for consumers.

The bottom line is, Lottoland needs to understand that the Aussie way is one of fairness. Fairness is paying out an advertised prize amount. Fairness is not taking advantage of newsagents customers. Fairness is not operating a bait-and-switch model. Fairness is not misusing trademarks of other businesses. Fairness is not looking for loopholes. And fairness is not being misleading.

MYTH

ALNA has been funded by Tatts and or TABCORP for the media and PR work.

FACT

ALNA has received no funding either financial or otherwise by either entity individually or combined in their government relations, Public relations, Media or any other campaign to eradicate synthetic lotteries from our industry. ALNA did receive in 2017 a Bronze Sponsorship package to subsidise the Awards for excellence attendance tickets for retailers and provide Prize Money to the winners at the Awards for excellence Lottery retailer of the year in each participating state, there was no profit achieved from this money.

MYTH

ALNA are supporting a monopoly environment at the detriment of their members and they are stopping members make more money!

FACT

ALNA are in fact working to protect their members and here is why

  1. There are clauses in the current contracts that may cause our members to be in breach if they attempt the Lottoland offer.
  2. Early indications about the Lottoland offer to newsagents also bring into question its legality and regulators are in the process of looking in to this, including its lack of license to provide betting services in retail venues.

iii.               Highly regulated products like lotteries tend to not have a huge number of suppliers, and this does not only apply to lotteries. Appropriate industry regulations that protect consumers in each jurisdiction they are licensed in, mean that new entrants can only exist if they fit within strict criteria. It’s actually a good thing for consumers.

MYTH

ALNA is a mouth piece for Tatts or now TABCORP and is now allowing them to build a monopoly at the expense of our Members.

FACT

ALNA has been in deep negotiation with Tatts or now TABCORP on commissions, Omni channel share and Shop fits for the last 12 Months, these negotiations are continuing and have not been finalised. There is more to be achieved in these negotiations but they are completely separate from our support to eradicate synthetic lotteries. We are certainly very clear to Tatts or now TABCORP that there is a large gap between current earnings/conditions and deserved earnings / conditions for our members. Our public submissions and research will support this and any copies you require of these documents can be achieved by merely asking me.

MYTH

ALNA is technically Insolvent

FACT

ALNA is audited every year, and all of our records are lodged with ASIC every year without fail, We hold our Annual general meetings as per the Corporations Act.

Our Audited reports contain an Auditors independence declaration and our reports can be obtained via ASIC. Any copies you require of these documents can be achieved by merely asking me.

MYTH

Another association is in a position to represent Newsagents.

FACT

ALNA is the only Association that has ACCC authorisation to collectively represent newsagents both locally and nationally.

ALNA is the only association representing over 2000 members in our industry.

As always feel free to contact me to discuss anything that may be of concern.

 

Warm regards

Adam

In this correspondence Adam responds to rumours being put about by others. A few weeks ago I mentioned anonymous correspondence I had received and suggested people sending it should publish it themselves. In two cases recently, the correspondence has attacked ALNA. I have not published it here and will not publish it here.

On the issue of Lottoland, I support the work of ALNA on this. They have done an extraordinary amount of good work for newsagents on this.

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Lotteries

ALNA makes the case newsagents are here to stay

Adam Joy, CEO of ALNA, has written for Convienence World making the case that newsagents are here to stay.

It is good to see the national association making this pitch on behalf of the channel.

The central thesis of the article is that newsagents embracing change are the ones with businesses that are here to stay. What the changes are will vary by business.

Click on the image to see a larger version.

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Newsagent representation

Bitcoin in Australian newsagencies … but why?

The news that Bitcoin can now be purchased in some newsagency businesses in Australia has got a bit of a run in the media, including the AFR.

Cryptocurrency punters are now able to buy bitcoin and ethereum from 1200 newsagents across the country with nothing more than a digital wallet, $50, an email address and a phone number.

The move makes it easier for people interested in investing a small amount of money in cryptocurrencies to purchase bitcoin or ethereum, without needing to navigate the process of doing it online.

For newsagents, it’s also providing a new reason for shoppers to come into the stores, while newspaper and magazine sales decline.

The AFR journalist who wrote this, Yolanda Redrup should have done more legwork. I doubt Introducing Bitcoin to a business will boost valuable traffic. It is agency business. The commission will not cover adequately for the time necessary.

While some newsagents prefer agency revenue, many have long ago left that world for more valuable and higher margin retailing.

Adam Joy CEO of ALNA commented for the AFR piece:

“Newsagents have many ways to innovate that are much less concerning and fall within regulations and safeguards. For example, embracing omni-shopping with mobile apps and an online presence that integrate with in-store shopping,” he said.

“When looking at cryptocurrency in particular, businesses need to be aware of the level of illegal activity and lack of transparency attached to cryptocurrencies.”

I agree with him.

In my opinion, the Bitcoin move like other agency products on the Blueshyft platform are leech products and services that leverage existing newsagency traffic and that do not offer adequate compensation for the work involved and the risk to the business.

That said, from a tech perspective I am not imposing any barrier to agency products like this on any platform with which I am involved.

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Newsagency management

How the retreat of banks from regional and rural Australia hurts small businesses retailers and the communities they serve

More Australian banks are pulling out of country towns, leaving local businesses and individuals without any over the counter bank services. They are closing branches and agencies.

In one situation recently, a regional town with a population of 2,000 saw its last bank brand close, leaving locals a forty-five-minute drive to the nearest bank. This means local businesses have a round trip of ninety minutes just to bank business takings, increasing business costs by hundreds of dollars a week as banking, which used to be done locally daily, now must be done three times a week resulting in four and a half hours in the can and at least another hour and a half parking, waiting and more.

This impacts on how a business operates.

While some businesses can operate by promoting cashless trading, in regional and rural towns with an older demographic, cash is preferred in everyday retail businesses like newsagencies.

In not banking every day, small business retailers carry more cash on their premises. This increases the risk of theft. Insurance company representatives have said this could result in higher premiums. The costs resulting from banks reducing their level of customer service cascade, hurting further these vulnerable local businesses that matter to their small local communities.

In having to bank far away, this increases the risk on the long journey to and from the bank.

With so many small business retailers in regional and rural Australia, matters such as the closure of local bank branches and agencies matters. Newsagents are being affected as are their customers and their suppliers.

It is possible that a local bank closure is enough to tip a local business owner to closing a local retail business. The knock-on effect on local jobs, local suppliers and out of town suppliers like us would be noticed.

I think there is a role for government here to offer an operating cost subsidy to banks that maintain regional and rural banks in towns with a lower than agreed population threshold. While I am not usually a fan of subsidies, in this situation there is merit, especially for small towns.

I think such a policy of support would not only help small businesses like newsagents, it would improve the appeal of the town for new residents as well as improving security for those who use the bank.

Locally owned small business retail is vital in any situation, but more so in regional and rural towns. The retreat by banks is an operational challenge that disadvantages regional and rural Australia and this is bad for the economy.

Through my POS software company Tower Systems I am actively supporting calls by small business retailers for government action to provide support for local banking services.

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Newsagency management

Media coverage on old news of Lotterywest CEO change

The Weekend West splashed a full page oh poor me story last weekend on the departure of the former Lotterywest CEO, following a FOI request by the Liberal opposition.

It is disappointing and unfortunate The Weekend West ran this story as they did as it did not tell the full story of the harm done to small businesses and the families that own them by the decisions of the old, now removed, executive leadership of Lotterywest.

Whereas the story paints the former CEO as a victim, newsagents suffered tremendously – financially and emotionally.

Thankfully, the has changed as a result of the change of government and subsequent decisions.

If I was a newsagent in WA selling Lotterywest products I’d be banging on the door of the Editor of The Weekend West  to demand more balanced reporting rather than this oh poor me piece about a CEO who lead an organisation through a period of extraordinary bullying and financial hardship meted out against family newsagency businesses.

I am grateful to newsagents in WA who let me know abut this report on the weekend.

Read more here about the improving relationship between newsagents and Lotterywest following the state election and subsequent decisions by Premier Mark McGowan.

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Newsagency management

Lotterywest improving relationship with newsagents thanks to new WA Premier

I am grateful for the opportunity attend the lottery forum and luncheon hosted last Friday by ALNA at Crown in Perth.

This was an honest event. I call it that because at its core were presentations from newsagents about the bad experiences with Lotterywest over the last few years. Their heartfelt stories made the situation real.

There was tremendous kudos for ALNA and their considerably work supporting newsagents, lobbying politicians to bring about change and their support of newsagents if what has been a difficult time.

There was equally tremendous support for Mark McGowan, the new Premier of WA – for the swift action his government has taken to deliver on their election promises about driving change at Lotterywest. His speech demonstrated a good understanding of the challenges newsagents had been facing.

I was seated next to the new CEO of Lotterywest. We had a good chat about the challenging situation inherited and the complexities of bringing cultural change to the organisation. Lotterywest has been on a path for the last few years that is now set to change, thanks to the change of government.

I also had a good chat with the Premier about what his government has inherited in WA. His appreciation for small business is encouraging for all WA small business owners.

In his speech, the Premier also spoke specifically about Lottoland and the nature of the product. The newsagents in the room liked what they heard.

Both the Premier and the new CEO of Lotterywest have a commitment to small business and, in particular, family businesses, like newsagents. Newsagent access to them is at a level I have never seen for our channel in the past. And, as I noted above, this is due to the work of ALNA in WA.

The luncheon is a credit to everyone involved. Many newsagents I spoke with told of how relieved they felt now compared to earlier this year when they though all hope was gone. The optimism in the room was wonderful, and exciting.

What has happened in WA is a lesson for newsagents across Australia of what can be achieved by working together relentlessly, with focus, on a issue that decision makers can fix.

I was at the luncheon as my newsagency software company was a sponsor of the event and in support of the many newsXpress members who make up the WA newsagent community.

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Lotteries

Supporting the ALNA newsagent / lottery agent meeting in Western Australia

ALNA approached my software company to support its meeting in Perth later this month for newsagents and lottery agents to hear from WA Premier Hon Mark McGowan about his vision for the role of retailers in Lotterywest. As the only government owned lottery operation left in Australia and given its terrific community engagement program, Lotterywest has a valued role with WA newsagents.

I am glad to have been able to help support this ALNA facilitated meeting.

Here are some details:

The Australian Lottery & Newsagents’ Association (ALNA) is hosting the largest event WA has ever seen for WA Lottery Retailers to hear from WA Premier Hon Mark McGowan about his vision for the role of retailers in Lotterywest.

The event is being held in the Grand Ballroom of Crown Perth on Friday 28th July from 11.30am to 3.30pm.

In addition to WA Premier Hon Mark McGowan MLA, the event will also be attended by the WA Small Business Minister Hon Paul Papalia MLA.

Lottery Retailers can come and meet, enjoy lunch and listen

to the Premier and hear about some of the changes underway, as requested and lobbied for by the Australian Lottery & Newsagents’ Association (ALNA).

This wonderful event will provide all WA Lottery Retailers with the opportunity to show Premier McGowan the difference that his leadership has made to their businesses and their lives.

The event will be complimentary for all WA Lottery Retailers. 

At a similar meeting earlier this year significant progress was made, which benefited retailers. While no obvious direct benefit flowed outside the state, I suspect Tatts watches WA engagement. Hopefully, they learn from a more co-operative approach.

The event is not a money marker for ALNA nor is it one for those involved in supporting it. It is an example of people and businesses engaged in the channel pulling together to support the channel.

I encourage all WA newsagents with lotteries in their business to attend.

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Lotteries

ALNA representations pay off for WA newsagents

Newsagents in Western Australia would have to be happy with the announcement from Lotterywest that they will increase their contribution toward the cost of shoplifts, an immediate review of the shoplift design and a common sense approach to signage.

The announcement by Lotterywest is a win for ALNA and the campaign they have run on behalf of newsagents.

Newsagents outside of WA will be envious and keen to explore how they can leverage similar gains from Tatts.

Here is the Lotterywest letter:

Here is the ALNA statement:

Lotterywest agrees to halt RTP & Network Expansion & Increase Shop fit Contribution – A Result of ALNA’s Representation to the new WA Government

ALNA welcomes today’s important news for all WA lottery retailers, that Lotterywest has agreed to the following essential changes to the Lotterywest RTP including contribution and review of design and necessary halting of the network expansion program:

  • Increase its contribution towards the Lotterywest shopfit with the intention to cover the costs of the Lotterywest components of the shopfit and to pay a capped contribution towards installation costs.
  • Immediately halt any further shopfits and review the RTP to address concerns on the shopfit and the signage
  • Immediately halt the Network Expansion Program and halt any further expansion pending appropriate review of the impact on existing locations.

Further to the communication sent out to all retailers today, Lotterywest have also commented in a letter sent to ALNA, that:

  • We will explore opportunities to involve retailers in our online offerings. This is a longer-term objective that will take some time to develop.

ALNA has been delighted with the support from the new WA Government, in particular the WA Premier Mark McGowan and Small Business Minister Paul Papalia. Both the Premier and Small Business Minister are extremely supportive of ALNA and WA lottery retailers and we extend our thanks to them in achieving this essential outcome in such a speedy fashion. WA Premier Mark McGowan said in a recent newspaper report ‘We acknowledge and understand the issues raised by the Australian Lottery & Newsagents’ Association’.

This common-sense outcome has taken more than a year of hard work by you the members and your Australian Lottery & Newsagent’s Association.

We are extremely pleased that Lotterywest has listened and is now treating its retail network with the respect you truly deserve.

This outcome sees:

  • a fairer apportioning of costs for retailers
  • an immediate halt and necessary review of the shopfit design
  • an appropriate and common sense approach to signage – not a less is more minimalist strategy not appropriate to the sale of lotto
  • an immediate half of all further shopfits.

ALNA appreciates Lotterywest coming to this conclusion and we look forward to working closely with Lotterywest once again for the betterment of Lotterywest and all WA retailers. Together, we can achieve great things and we look forward to a new era with Lotterywest and retailers.

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Leadership

How large companies deal with small business

The Sydney Morning Herald had a terrific report Wednesday on how large companies deal with small business in the payment for goods and services.

The report is on the back of research by Kate Carnell,the Small business ombudsman.

“It’s pretty close to extortion really,” Carnell said. “Large multinational businesses’ payment terms have blown out considerably. They are now moving to have standard contractual payment times of up to 120 days. It’s really bad for midsize businesses and a shocker for the SME space. It will kill SMEs.”

We have all been there, waiting for payment from big business clients. The cost makes the business not worth it.

It is good see the Small business ombudsman engaged on this issue. More please.

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Ethics

Associations and newspaper publishers

VANA is promoting what appears to be a series of News Corp. newsagent promotion event. I think associations need to be associations and not marketing arms for newspaper publishers. Also, this latest marketing from VANA indicates a visual disconnect from the national association, ALNA, with a very different looking logo.

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Newsagent representation

Newsagents on the front page of the the Queensland Times newspaper

Screen Shot 2017-01-11 at 12.42.34 PMThe Queensland Times out today has the future of newsagents being questioned in an article on the front page of the paper. While the article quotes me from what I have written at this blog. I was not contacted prior to publication, which is frustrating as the article lacks context.

Had the journalist spoken to me before writing the article, I would have pointed them to several of the many posts, including recent posts, where I talk about the future optimistically.

Sure, the Tatts demands placed on newsagents are challenging. I have written about them here extensively. However, there is plenty of good news in the channel, plenty of newsagents growing their businesses.

Any article writing about challenges faced by newsagents needs to have balance, this is what I mean by context.

In terms of the Tatts refit demands, I’d like Tatts to provide evidence of the return newsagents will get from the refit and the increased operating costs of the digital screens. Then, I would like Tatts to engage in mediated dialogue with newsagents to seek a fairer cost basis for the demanded refits. The demanded capital cost needs to be funded from margin faster than is currently anticipated.

I appreciate the time Kelly Higgins-Devive gave to this issue in an interview with me today on ABC radio Brisbane. The producer of Mornings on ABC Radio Brisbane called me to seek an interview. They told me they wanted to speak with newsagents but those they spoke with did not want to go on air for fear of reprisals.

Click here to hear the program. I was on air at around 9:20am so listen at around that time.

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Newsagency management

Changes at ANCOL in South Australia

ANCOL, the newsagent owned stationery wholesale business and local shareholder in Newspower, issued this statement two days ago:

We have conducted  a review of the ANCOL Group’s operational requirements.

As a result of this review the position of ANCOL Sales Manager has been made redundant, effective immediately.

Your existing Account Manager will continue to call and be responsible for the day to day needs of your business. There are no changes to call cycles and the Account Managers will continue to provide the exemplary service levels the Co-operative currently provides.

If you need additional assistance with an issue, query or problem do not hesitate to contact the Operations Manager, Ben Myles or myself.

In my opinion there will be a rationalisation of stationery wholesale in South Australia as the changes under way at GNS play out. South Australia is too small for ANCOL to help newsagents to source stationery on competitive terms.

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Newsagent representation

Hubbed partners with 7-Eleven

Hubbed has a stand at the Sydney Gift Fair where they are having out a brochure pitching retail outlets. The newsagent N is on the flyer on the same line as the 7-Eleven logo. The ANF has a stand at the trade show too, with no obvious mention of Hubbed. The ANF did at one stage have a financial interest in the Hubbed business – when they endorsed it and launched it to newsagents.

Also at this Gift Fair, Australia Post has a stand offering services to online retailers. This is not their first outing at a gift fair. What is different this time is their engagement with suppliers – they have visited each stand in a proactive move.

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Hubbed

Committing to newsagents and the Australian newsagency channel

With the number of newsagency closures and the retreating of some suppliers to newsagents, I felt compelled as the owner of newsagency software company Tower Systems to write recently to newsagents reaffirming my commitment to the channel.  I took the step as a note of positive affirmation.

Here is what I said in my letter:

Here are our commitments to you:

  1. We will not leave the newsagency channel. With more than 1,750 newsagent customers today we are here for you.
  2. We will fight for you. Beyond our software, outside of support, we will help with supplier issues, business strategy and other challenges you confront.
  3. No locked-in support. Taking support coverage is optional. We never block access to your software if you choose to not take support coverage.
  4. Lower support costs.
  5. Fast support. Most calls are handled when you call. If not, we call back fast.
  6. Easy management access. The leadership team of Tower Systems is available if you need them. We take customer service seriously and personally.
  7. Updates when you choose. You are in control of when you load updates.
  8. You are listened to. We offer the only transparent, user driven, software enhancement suggestion service. All our customers are listened to.
  9. Regular user meetings. Around the country, in city and regional locations – we offer free face to face training and networking through the year.
  10. Free training. Long after you install our software you have access to free personal training to refresh knowledge or provide training on new facilities.
  11. More integrations. Our direct links to Xero, Magento, Shopify and more mean you have more direct link options to help you grow your business.
  12. Business management insights. We can look at your business performance data and provide a personal analysis of what we see
  13. The Tower AdvantageTM. Our professional and friendly help from training to support to business advice. We are not your average software company.
  14. Owner access. Our owner, Mark Fletcher, is easily accessible: 0418 321 338.

You can purchase our software, lease it or even rent it by the month. You choose the path most appropriate to your needs. We make doing business easy.

END.

The channel is in a period in its life where change is the order of the day. This is disrupting many. One goal of my note was to say here is stability on which you can lean as you navigate changes.

Personally, I think there is a bright future for engaged newsagents who are embracing and chasing change. Revenue and GP growth are achievable. It’s hard work but it can be done.

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Newsagency management

Why are governments handing taxi drivers compensation for deregulation?

I was shocked to hear the number $800 million bandied about on radio in Melbourne Friday as the amount that may be paid to Victorian taxi drivers in return for deregulation in the face of competition from Uber. Any amount paid to taxi drivers is wrong in my view.

Then, I discovered the $20K reportedly paid to NSW taxi drivers and the $100M transition package for Queensland taxi drivers.

It reminded me of the hundreds of millions of dollars a year compensation for the TV networks from successive federal governments so the TV networks could deal with technology changes, right at the time of increased competition for them.

Back in 1999, small business newsagents had their exclusive territory ripped from them by the Howard government. No compensation was paid. I estimate that at least $500,000,000.00 was wiped from the value of the newsagency business assets as a consequence of the deregulation. I suspect the cost was more than the $.5B I estimated.

Some of the write down is being felt today as long-held businesses are sold.

Yet no compensation was paid to newsagents.

Compensation had been paid years earlier as the federal government forced the sale / closure of pharmacies as Australia had too many.

But no compensation was paid to newsagents.

The newspaper publishers and magazine publishers at the time offered no support of small business newsagents in pursuit of compensation. Some of those parties involved were robust in representations to government seeking compensation for TV networks.

Bow we see the generosity of state governments, conservative and labor, to taxi drivers to help them deal with deregulation.

Newsagents have every right to feel aggrieved.

On the politician side those around at the time of deregulation said newsagents were poorly represented. Maybe so but I would have expected greater care for newsagents than taxi drivers given the role back then of the local newsagent in the community versus the role of and respect for taxi drivers today.

With this latest taxi driver news it is clear newsagents were dudded. While there is nothing for today;s newsagents to gain, it is a reminder of how useless politicians are when it comes to representing their constituents. They look after themselves and their closest mates first followed by those who they feel could do them harm. Newsagents never made it into that top three.

If I had a say, I’d pitch that taxi drivers get no compensation for deregulation. You can’t have a free market, a global market and offer compensation. But, then, we don’t have a truly free and global market – only when it suits vested interests.

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Newsagent representation

It is time for newsagents to be able to purchase stationery from suppliers direct

For decades newsagents have had to purchase stationery through one or the other of the newsagency stationery wholesalers.

Even when the supplier rep has been in-store, written up the order and, on occasion, supplied stock, the ‘order’ has been turned back through the wholesaler – for a premium … kind of like a tax to support the warehouse.

This order turn back has been a tax on newsagents, making their purchasing cost higher, all in the name of supporting the newsagency stationery suppliers.

What has the order turn back approach achieved? Are the stationery warehouses stronger as a result? Have newsagents themselves benefited by paying a higher price for stationery, have they received some other benefit as a result? No, I think the approach has had its day, I think it has not achieved anything and, today, it only acts as a tax.

For newsagents to be competitive in stationery, especially, with branded stationery, I think we need to be able to purchase directly without any additional cost being imposed to support a warehouse that often does not add value to the transaction.

By dealing direct in some cases we will have access to a broader range of product. This will facilitate specialisation, helping to drive sales.

Suppliers don’t need to increase their costs by increasing in-store contact with retailers. Rather, they should ensure they have a best practice website through which newsagents can order and see new products.

In my own newsagencies my focus 100% is on national brands of stationery. I want to go deep for some brands, to ensure a strong visual story in-store and online. I am better able to do this if I can go direct.

So, yes, I think it is time for stationery suppliers to offer direct accounts to newsagents, to enable those who want to specialise and go deep with a brand to do so.

Sure, there will be some newsagents who still want to go through the warehouse, and they can.

The world has changed and how we buy stationery needs to change. As I wrote recently about GNS, the model needs a shake-up for it to have a future.

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newsagency of the future

ANF becomes ALNA

The ANF has rebranded itself with what appears to be a lottery first focus with this announcement:

ANF Announcement

Building strong businesses for our members is at the forefront of our decision making processes at the ANF. The Board consistently reviews and adapts how we can best represent members effectively.

Our commitment to providing our members with the most relevant industry information continues into 2016; we are building on existing relationships with our partners; developing new partnerships and assessing how the channel can grow to continue to be sustainable in the evolving retail and distribution environment.

As part of this work, the ACCC at our request recently included lotteries in our ACCC National Collective Bargaining Authorisation, with the support of Tatts Lotteries. As a result, the ANF board at their most recent meeting, passed a motion to incorporate the word ‘Lottery’ into our trading name as well.

There will be no change to who we are, and what we do to support all members. The inclusion of the word ‘Lottery’ within our trading name is one that makes sense. It recognises that Lotteries have been entrenched within a majority of your retail businesses for many years, and also the important work we already do for members in this area. The change also further strengthens our representation for our members with State and Federal Governments.

The Australian Newsagents’ Federation is undergoing a rebrand and refresh of our company identity. From 1 August 2016 The ANF will trade under the name Australian Lottery and Newsagents’ Association (ALNA).

We will continue to trade under the same ABN and ACN. We will also continue to maintain ownership and hold authorisation of the N logo.

3 likes
Newsagent representation

GNS responds to discussion on stationery

GNS CEO Alex Stewart provided the following in response to comments by others to a post here about stationery. I am posting the response in full. I’d note that my post was about a whole of store approach, hence my focus on Typo in the post.  Here in the GNS response in its entirety. It has been written in relation to comments by a newsagent:

We have reviewed your comments and would like to provide a response where we see it corresponds to specific comments made. For that reason we have included extracts of your post in red to establish a reference point. We are addressing this as GNS only. Where Ancol is referenced we can only speak for GNS in context.

Whilst GNS and Ancol may introduce a range of “fashion” stationery it’s usually confined to notebooks and other associated lines.

There is no whole of stationery range concept.

We have introduced Skweek and Urban ranges and have been selling in hundreds of Newsagencies for almost 1 year now. It does cover a wide range of products within the fashion category, including Notebooks. It was introduced to allow Newsagents who would like to provide customers with a lower cost alternative to existing brands, with a sustainable margin position for Newsagents (see  link to Facebook page and the many great examples of SKWEEK at Newsagencies https://www.facebook.com/skweekaustralia/ )

Skweek newsXpress Kyneton

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newsXpress Sunbury Square

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The range includes pencils cases, calculators, exercise books, scissors, lunch bags, gift sets, stickers, sharpeners, erasers, bag tags, key rings, pens, puzzle rulers, our big foot highlighters and more. The Colour blocked range across the 4 colours, provides plenty of opportunity for repeat purchases and provides attractive margins to Newsagents.

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Similarly, our ‘Urban by Modena’ range, designed for teens and adults, has been ranged by hundreds of Newsagents and ANCOL have also taken up this range. This is a tighter range that focuses on core products, including pens, pencils cases, note books, journals and memo sets. Again, this offers attractive margins to Newsagents.

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We will continue to develop products based on market demand but ultimately need support from Newsagents to justify the investment in developing, sourcing and stocking these products.

Just look at Sovereign brand, seriously, is that the best they can do , the packaging and presentation of that brand is doing a disservice to Newsagents.

Much could be done with new and bold colours enabling colour blocking and a new look to or shelves.

Invoice statement books, time books, ect ect yes they are boring ,but with a revamp you shop would have a new fresh feel.

It seems to me that GNS and Ancol do not have the will to look at stationery as an opportunity to create new and exciting ranges and designs.

Instead they stock product which looks the same as it did 20 years ago.

We are assuming here Mark that you have not seen the new Sovereign Packaging? This is progressively being introduced across the entire range. We think it represents a major advance in presenting the brand in a contemporary and consistent image. The previous Sovereign branding was very out-dated and a rebranding exercise commenced last year, with over 100 products now rebranded and available at GNS e.g. envelope range, packaging tape range etc.

Here are some examples:

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We will continue to update and review the ranges and expect to have the full Sovereign re branding exercise complete in 2017. GNS will eventually disappear from all products and be replaced with Sovereign (e.g. Scholastic/ Exercise Book range last Back to School).

There has been a culture within our stationery suppliers to not change but instead wheel out the same product year after year.

Playing it safe has been their game, however this attitude will not cut it in today’s competitive market.

When you have Newsagents suggesting to our wholesalers, they need new products/designs and all you get back is every reason why not to do it , well then you have a problem a big problem , I have encountered this attitude many times over the years.

I can only speak for GNS when I say we have spent considerable time, effort and money to develop new products, brands, ranges. I would like to know recent examples of where GNS has not developed new products or introduced new lines for Newsagents.

There are many current and recent examples including Star Wars® products, improved Art and Craft ranges, Tombow® products, Giftware, Fashion Diaries, Sluben™, Marvel® products, better Xmas Toy lines, improved packaging, Adult Colouring Solutions, Tech Accessories, Impulse Medicines, Lonely Planet™ Travel Accessories and many more items.

We would be happy to hear from Newsagents about suggested ranges and if it makes sense, we will do it. If you believe otherwise, please let me know.

7 likes
Newsagency challenges

Small business policies of the major parties this federal election

As often happens during election campaigns, we are fed headlines and little policy detail. Click on the links below for the small business policy pages of each of the major parties and see for yourself which small business policy you prefer. There is a difference in detail and detail matters for it reflects understanding. The greater the policy detail the more serious the party is on an issue in my view.

I have not posted the links here to suggest one is better than the other. Mo key interest is to ensure opinions about small business policies are fully informed.

6 likes
Newsagency challenges

Is the ANF using newsagent funds in support of big tobacco this federal election?

Screen Shot 2016-06-28 at 9.04.18 PMThe ANF is claimed as a supporting organisation of the Association of Australian Retailers, a group that appears to have been established to support the interests of big tobacco. Read what sourcewatch says about the AAR. Read what tobacco tactics says.

AAR sent some newsagents a pack of materials to be used during the current federal election campaign – promoting Senator David Leyonhjelm, a politician who supports big tobacco.

I was alerted to AAR in a comment by Gregg on this blog:

We have just received a parcel from Alliance of Australian Retailers with a letter accompanying signed by a Chiang Lim General Manager. The parcel has flyers and posters promoting Senator David Leyonhjelm and his stance on Tobacco products.
I have just rewrapped and sent it back as a RTS. But who are Alliance of Australian Retailers and who is Chiang Lim?

Chiang Lim is a former General Manager of NANA, the NSW newsagent’s association. Chiang left the organisation quickly under an apparent cloud. Lim appeared before a parliamentary committee in March claiming his organisation represented 3,000 small business retailers including newsagents.

My name is Chiang Lim. I am the AAR’s general manager. Since 2011, the AAR has represented up to 3,000 small businesses across Australia and its member retailers. They include newsagents, corner stores, small supermarkets, mixed businesses and other independent retailers.

I would be interested to know whether newsagents have directly joined AAR or whether the claim of 3,000 is a leveraging of ANF member numbers and members of other organisations.

I am not an ANF member and so am not across their statements to members. It would be good to know if they have made any statement about involvement with AAR and whether any newsagent funds have been used in this federal election campaign.

This is important because Lim in his evidence to the parliamentary committee made claims on behalf of newsagents, claims for which I am not aware of any evidence:

Whether they are newsagents, corner stores, small supermarkets, mixed businesses and other independent retailers, these small business retailers are universally owned by families who have mortgaged their homes and tipped their life savings into the businesses. They rely on customers who buy not just tobacco products but other items in their shopping baskets. Since the introduction of plain packaging and cumulatively high excise taxes, these retailers now operate in a current environment where customers more than ever are actively seeking the cheapest available tobacco products, legal or otherwise, knowingly or unknowingly. With the loss of such customers to those who sell illicit tobacco, our small business retailers lose the sales of those many other items in those customers’ shopping baskets. They are putting at risk overall revenue, their profitability, their ability to employ staff, pay themselves, the future value of their businesses and not to mention their home mortgages that cover their businesses.

Anyone claiming to represent our channel needs to do so armed with irrefutable facts and to do so on issues about which those they claim to represent have been full consulted. I don’t think that has happened in this case.

If you are an ANF member and are concerned about this, contact them and ask for information about their involvement with the AAR – they are listed on the AAR website.

11 likes
Newsagent representation

The return on investment question for newsagency associations, or any small business association

Screen Shot 2016-06-23 at 7.27.05 PMThe decision to remain a member of a newsagency association ought to be a business decision based on tangible benefits.

How much does it cost for a year? What tangible benefits have you achieved in the last year? What other use could you make of such an investment?

Talking with a newsagent recently, they cited access to award rates as the main benefit for their considerable cost a year. In less than a minute I showed them online access to a free service via Fairwork.

The ANF on their website (see image) lists annual membership at $876.00 per year. Think about what you could do with that $876. The new product range you could bring in, the ads you could run, the changes you could find in the business, the manager you could pay while you have a week off.

I can think of plenty of products categories you could introduce for this spend, categories off of which you can expect to make between $3,000 and $5,000 in GP a year.

Note: this discussion is about any association in any retail channel. The numbers and needs are the same.

Each of these benefits would be, I suspect, more practically useful to the business than what the ANF provides.

Associations need to justify the fees they charge. It is not enough to say support us and we support you as on the representation front they do a mediocre job at best in my view.

I estimate newsagents pour around $2,500,000 a year into their associations nationally. I doubt newsagents see a return equal to this flowing to their businesses.

Think about that. Can you identify $2.5M in value to the newsagency channel from any of all of the newsagent associations in the last year?

Now, think about what else that $2.5M could have been spent on your behalf.

I would love to see this debated publicly in front of newsagents with representatives from newsagent associations. Not to tear them down but to flesh out if they are delivering value. It could be I am wrong. If I am the associations ought to make the point and show it, they ought to show genuine bottom line value to newsagent members.

With the commercial future of newsagency businesses further removed from what the associations are interested in, I see little value in them.

16 likes
Newsagency management
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