Newsagent representation

The VANA Board has decided to reorganise operations and not replace the CEO role.  The new structure better respects newsagents and leverages the stronger VANA / ANF relationship.  It’s a move which goes beyond the words of unity and demonstrates a practical move toward a now approach for newsagent representation.

My personal view is that newsagents are over represented in associations.  A leaner and more cohesive team could achieve more for newsagents.  The VANA move is good leadership in this regard.

Unity between the ANF and state associations is on show in Melbourne at the ANF Conference this week.  While I could only attend for half of Monday and the welcome function on Sunday evening, a shared purpose was evident not only among representatives of the associations but also newsagents and suppliers.

The level of cooperation is a far cry from the divisiveness of years gone by.

It will be exciting to see what is achieved by working together for the good of the newsagency channel.

The conference itself was smaller than in the past, completely appropriate for the times.  The program was practical with excellent learning opportunities for newsagents and suppliers. Importantly, there was no waste of newsagent and newsagent supplier funds as happened years ago.

Last night in Sydney at the Forrester Hotel in Surry Hills newsagency industry people gathered to farewell Gary Monks who retires today as CEO of NANA, the Newsagents Association of NSW & ACT.  Garry has served newsagents for twelve years.  He has done so with a tireless commitment to his newsagent constituency.  Gary has always been open, honest and fair.  I have tremendous respect for him.

I have known Gary for many years.  He is a true gentleman, authentic.. He served NANA through some turbulent times and has seen the organisation come out the other side and finish the latest financial year in excellent shape. Last night he received thanks and kudos for a job well done.

Farewell Gary … enjoy the next chapter of your life.

VANA and GNS issued the following joint statement this afternoon which I am sure will interest newsagents:

Newsagents today face an industry in waiting. Publishers are looking at different models to shape the industry of the future and newsagents are facing many months of uncertainty as well as dealing with the ever changing ways of the retail market. Similarly many wholesalers are seeing the industry changing with retailers looking for new forms of product to fill the void of this changing retail market. Their challenge is to remain relevant to their existing client base.

History has it that Associations have always tried to look after their members to the best of their ability, with suppliers and industry partners often locking horns with associations over “who’s job is it to do what”. With both believing strongly in their reason and efforts, often the member, in this case, the newsagent, risks missing the opportunity of establishing their real power to the consumer.

For this reason, VANA and GNS have begun discussions in an effort to help the newsagency industry strengthen its place in the retail market. Together, VANA and GNS, will be working on ways to get the best out of both organisations in order that the newsagent is able to refocus themself as the dominating retailer it is.

Initial discussions have included:-

• Development opportunity of the N-Branded product
• Better communications between both organisations
• Training opportunities for newsagents
• Collective development of on-line opportunities for newsagents.
• GNS Market fair developing an “industry feel” for all newsagents.
• N-Stock opportunities
• Re-enforcement of the stationery category in newsagents
• Promoting the need for marketing by all newsagents

As both organisations are challenged with the retail environment today we need to always remained focused on the reason for our existence …. To support and create opportunities for the newsagency industry to move forward successfully.

The time has come to make sure actions by both organisations remain focused on this success of the Newsagency industry as a whole. We look forward to keeping you updated … as our successful working relationship that will be reflected into our industries’ success.

Regards,

E J Rogan
Chairman of the Board
Gerard Munday
VANA Chairman

Completing national unity of newsagent associations, NANA and the ANF this week made this announcement:

Thursday 26th May, 2011

ANF and NANA Unity Agreement

On Tuesday 24th May, the Australian Newsagents’ Federation (ANF) and the Newsagents Association of NSW & ACT (NANA) signed an historic agreement that cements national and state representations and advocacy for their Member Newsagents. This agreement is the culmination of six months of strategic efforts by both boards and executives.

Beginning 1 July 2011, all Member Newsagents in NSW and the ACT will be offered joint benefits and services provided by the ANF and NANA.

ANF CEO Alf Maccioni said now that there are arrangements with all states the ANF can represent the entire industry on a national basis facilitating a strong united front to address industry issues.

NANA President Andrew Packham said, “this is the representative structure that gives member Newsagents a real voice. In NSW and the ACT, Member Newsagents will experience even more effective and broader spectrum advocacies from this union, whether it is dealing with suppliers or government. NANA and ANF will continue to single-mindedly focus on producing business results for our Members. Now is the time to be a Member and have your say.”

Well done to everyone involved in what has been a long journey.

VANA members voted in unprecedented numbers in the election which closed this morning. The incumbent independent director Robert Wade achieved 159 votes. Trevor Mason achieved 48 votes. It is good to see so many newsagents participating in an election.

This vote is a vote for VANA to not head down the road of VANA getting into more commercial activities. I think it says that Victorian newsagents want their association to be, well, an association.

VANA Board candidate Trevor Mason yesterday emailed VANA members with his final pitch for their vote.  In the email was this statement:

Over the last 12 months we have developed solutions in distribution, product ranging, increased profitability for the card business, and more.

I would welcome any of the newsagents Mason claims to have helped to comment here about the results.

The veracity of Mason’s claims is important since, as I understand it, he and three colleagues will control the VANA Board and commit VANA to his commercial  plan.  For more on the VANA election, click here and here.

The question for Victorian newsagents is whether they want their state association to become a commercial entity or to be an association.

Click here to see a copy of a communication from VANA Board candidate Trevor Mason to Victorian newsagents yesterday.

I am left wondering if Trevor wants $100,000 of VANA’s finds for his project or the four or five times that amount which I understand he originally sought from  VANA.

If Trevor wants to engage in the commercial structure and operation of newsagents he ought to do that through the commercial structure he has established already. If the riches which he says he can unlock for newsagents are so real then the numbers will stack up and newsagents will support him, commercially.

To try and support this business venture VANA, as appears may be the agenda with this election, would be an abuse of the resources VANA and its members have built up over many years.

I am all for change in the newsagency channel and in newsagencies themselves and write about it here often.  However, that change must be driven and controlled by the shareholders and not an industry association which is a servant of its members.

I see data from many newsagencies.  There are some excellent success stories out there of people reinventing their newsagencies, building customer traffic and profitability. Unfortunately, too many newsagents will realise too late that they should have been doing this. This is their problem and not the problem of the associations.

Click here to see a copy of the statements issued by VANA on behalf of the two candidates for the one vacancy on the board.

Based on the statements from the candidates it is clear that there is a considerable difference between the two.  Robert Wade proposes that VANA act as an association, serving the needs of newsagents.  Trevor Mason appears to prefer commercial activity through VANA.

As I understand it, if Mason is elected, a block of Directors would support his agenda.  I’d welcome comment from and Board member to confirm or deny this.

If I was a VANA member I would not be supporting Mason.  I know a bit about his model based on my own discussions with him.  I do not believe that he has a plan other than to take care of himself. He is an excellent salesman without a track record of relevance to the needs of newsagents and the newsagency channel in my view.

This all matters to newsagents around the country as VANA has more resources than any other newsagent association – thanks to astute property moves started in the 1990s when the association was pulling itself out of a mess left by a former CEO.

The non newsagent Director position on the VANA board has become a contest with Trevor Mason being nominated to challenge the long term incumbent Robert Wade.

Wade has served as non newsagent and independent Director for many years.  He outside the channel view has been useful as VANA has navigated some complex issues.

Mason was behind the Futures Project which sought to use newsagent funds to embark on a commercial venture that, in my view, had no relevance for an industry association.  He has gone on to establish a similar venture outside of VANA.  I would expect that some VANA members will want to know whether he will seek to reignite the Futures Project or anything like it if he is elected.

As I resigned from VANA in April last year, my right to an opinion is somewhat diminished.

The ANF has sent material to some newsagents to rpomote engagement in the federal election campaign.  The ANF is seeking for the Minister for Small Business to be elevated to Cabinet and for the appointment of a Federal Small Business Commissioner. I have previously supported these proposals and happily do so again here.

Click here to see a copy of a flyer the ANF proposes newsagents put on their counter.

Years after ATMs started appearing in newsagencies, Customers Limited announced to the ASX today a deal with the ANF.  It’s an odd move for an industry association.

In November last year I blogged that I had heard that the ANF was close to announcing a relationship with Corporate Express.  I questioned this reported move in the context of newsagents owning GNS.

Newsagents own Group Newsagency Supplies (GNS) and the majority of Australian newsagents purchase their stationery from GNS. I would have thought that a closer relationship between the ANF and GNS would be good for the newsagency channel rather than working with a competitor.

I thought (hoped) the ANF discussions with Corporate Express had ended with no deal.  I am hearing from a couple of people that such a thought (hope) was premature.  Why the ANF would be trying to negotiate any commercial deal is beyond me.  They are an industry association.  Commercial deals have no place at the ANF – remember Bill Express.

Further, why the ANF would want to deal with an organisation which competes with a $100 million a year business which is owned by newsagents makes no sense at all.  GNS is ours.  It is an asset to the channel and ought to be used to its fullest to strengthen our channel.

More than 170 newsagents met in Adelaide just before Christmas to discuss the News Limited contracts.  At the meeting the newsagents made their views clear to all of us there including the ANF.  They created a committee to work through their log of claims.

There have been various discussions between the newsagents and the ANF culminating in the newsagents asking the ANF to form a sub-committee to progress negotiations with News.

The ANF has rejected the will of SA newsagents and ruled against forming a sub-committee of newsagents.  It wants SA newsagents to rely on the ANF SA committee, the same committee which many SA newsagents have previously been critical of.

The ANF has missed an opportunity here to demonstrate a preparedness to listen to and act on the will of newsagents.

I’ve heard that some NANA members are unhappy with aspects of NANA’s operation including the make up of the Board.  There is talk of a special general meeting if concerns are not addressed.  I am told concerns are around issues of finances, Board positions and communication.

By blogging about this I’m giving any newsagent an opportunity to comment.

Associations have an obligation to be open with members.  Too often newsagents around Australia have been let down by secretive sub-standard representation.

Members of association boards need to put their members ahead of themselves.

The ANF has recently been pitching advertising in its yearbook, N-View to newsagent suppliers.  The pitch includes:

The industry yearbook, N-View is an invaluable resource for the newsagency channel; distributed to newsagents, suppliers and new newsagents joining the industry. It is the who’s who and what’s what of the industry and includes best practice advice and practical information. This prestigious reference guide provides essential data and statistics in book form and online.

I don’t think N-View is invaluable to the channel any more.  Newsagents and prospective newsagents are using other more up-to-date and transparent resources.

The respect for and influence of the ANF has faded.  Leadership missteps by the Board, a revolving door of CEOs unable to guide the Board and a failure to faithfully serve newsagents has left the ANF less relevant than ever and, by association, its publications.

Newsagent suppliers are asked regularly by associations for financial support.  This support needs to deliver measureable outcomes for it to be sustainable – it is newsagents who ultimately pay for the financial support privide to association projects such as N-View.  Every $ given to an N-View ad or something similar is a $ less available to newsagents.

If I were able to influence the future of N-View, it would be to take N-View to an online only offer.  I’d pitch to suppliers how much the ANF would invest of its own funds into the online model.  I’d establish an independent editorial Board to ensure transparent editorial coverage of industry events and suppliers based on value and not what they pay.  I’d create a website which is the go to resource for the channel, not because this is what I call it but because it is.  This is the kind of leadership the ANF Board needs to deliver for N-View and other ANF publications to be relevant.