A blog on issues affecting Australia's newsagents, media and small business generally. More ...

newsagent software

What I think about the future of newspaper home delivery for newsagents

I was talking to a newsagent the other day who said oh that’s right, you think newspaper home delivery is dead.  I don’t think it’s dead, actually.

While I don’t see much upside in newspaper home delivery as a stand-alone operation or a smaller scale operation as it has been in the past, I work with newsagents who are building larger and successful home delivery businesses.

Indeed, I have signed off on considerable investment by my newsagency software company in a new suite of enhancements in the newspaper distribution facilities in our software.  I would not be spending into six figures enhancing newspaper distribution software if I did not consider there was upside for my newsagent colleagues and my software company.

So, my actions answer for me.

Yes, there will be mass consolidation of newspaper distribution businesses over the next two years. The reality is this has been going on, quietly, for the last few years. I know newsagents running warehouse operations that have grown through acquisition. These are good businesses.

The wash up is that newsagents running loss making distribution businesses as well as retail businesses can concentrate on what they do well.  I am hopeful that a result from this will be better retail newsagents.

While there is no obvious upside in the future of print newspapers, there could be considerable upside in a professional locally based distribution business.  It’s this opportunity that gets me investing my own money in better newsagency software.

11 likes
Newsagency management

Inaccurate claims on XchangeIT by Access POS

The Access POS software company has published a claim that it is the only software company with 100% XchangeIT file integrity. The claim is misleading in my in that it does not reflect all compliance measures tracked by XchangeIT. It is claim that XchangeIT has been asked to approach Access POS to withdraw . Besides the inaccuracy, software companies are under confidentiality with XIT.

I know a bit about XchangeIT standards as my newsagency software company, Tower Systems,  participated in developing the file structures and standards at the heart of newsagent EDI, the structures and standards on which XchangeIT standards are based.

With more than 1,800 newsagents as customers, Tower Systems has 1,000 more newsagents using its software than any other software company. Access POS is trying to make out that they are bigger and better than they are. I respect the 90 or so newsagents using their software but note that size will matter as the newsagency channel consolidates.

Consolidation is one of the reasons I purchased the NewsPOS software business. Access POS claims that the NewsPOS business is closed.  It is not closed – NewsPOS newsagents continue to use the software, they get support … nothing has changed except for the ownership of the company. AccessPOS knows this.

Things can get feisty between newsagency software companies.  I’ll be in court in a few weeks defending action brought on by POS Solutions in which they complain about why and how 200+ of their newsagent customers came to switch to Tower Systems.

I stand by every claim I have made about my software and my software company.

0 likes
Ethics

Newsagency software facilitates consolidation in newspaper distribution

For years my newsagency software company has been working with consortiums of newsagents in several states on various newspaper distribution consolidation models.

While each model is quite different, they all have a common goal at their core – to leverage scale to create a commercially viable newspaper distribution operation.

At one end we have newsagents buying up runs and managing these out of their original premises or a nearby small warehouse. At the other end we have large operations with a mid-size business structure. In between there are several other models.

All look for the retail newsagent to be the shop front of the distribution business, collecting home delivery payments and sometimes managing stops and starts and other customer queries.

Some of these consolidation models have been in existence for close to ten years. Others are just starting now.

While there are some in the channel who want the channel to solve the challenge of consolidation which is now, finally, being brought on in the open by News Limited, I know there are others who have the view that market forces should prevail and the channel should not try take care of those who have not adapted their business models over the years.

I lean toward the more commercial market forces view.

There are newsagents who have invested and through this have created for themselves a commercial advantage. They are entitled to that advantage – just as I am through my software company and the work being done with various consortiums to leverage the consolidated distribution model through software enhancements.

We are in the midst of extraordinary change in our channel. We all must embrace every opportunity for and aspect of change if our respective businesses are to make the most of the opportunities. What we do and the rewards we achieve are part of the free market system.

0 likes
Newsagency management

Tower Systems purchases NewsPOS newsagency software business

Newsagency software company Tower Systems has agreed acquisition terms with the owners of the NewsPOS newsagency software business.

NewsPOS serves a loyal community of newsagents in Queensland and New South Wales and has offered best-practice low-cost newsagency software for some years.

Under the terms of the transaction, Tower Systems will assume full responsibility for the NewsPOS software and customer service from next week.

“We will maintain the NewsPOS software, price model and support services and not pressure NewsPOS users to switch” commented Tower Systems Managing Director Mark Fletcher. “Our development and help desk teams will be trained in NewsPOS so that we can provide easy access to quality support for as long as is needed.”

“I am thrilled to have found a place where NewsPOS users can continue to use the software without pressure to switch” commented David Groth, the founder of NewsPOS and the force behind the business. “I am looking forward to working with Tower, training their people and introducing them to NewsPOS customers.”

The acquisition by Tower Systems extends its newsagent market share, pushing its newsagent customer numbers to more than 1,800. The next largest newsagency software company is POS Solutions with an estimated 600 newsagents as customers.

The Tower software serves newsagents in the retail management, stock control, theft management, sub agent and newspaper home delivery areas.

With consolidation of newsagency businesses and newsagent suppliers very much in play in 2012, this acquisition is not expected to be the last in the newsagency software space.

Newsagents using the NewsPOS software are welcome to contact David Groth on 0412 079 308 or Mark Fletcher on 0418 321 338. Once the hand over has been completed Tower Systems will email and fax help desk contact details to all NewsPOS customers.

0 likes
newsagent software

Invitation to newsagents in the Brisbane area

My newsagency software company Tower Systems has been running user meetings around Australia over the last three weeks. It’s been terrific to meet with many newsagents and talk about business and share some retail insights from my recent travels and ideas for sales growth in 2012. The last session of the current round is in Brisbane next Tuesday at 11am at the River View Hotel. I’d welcome any newsagent who would like to come along next Tuesday- regardless of whether you use the Tower newsagency software. Click here to book. Bookings are essential for catering etc. The session runs for two hours depending on questions. This is not a sales meeting.

0 likes
newsagent software

National Newsagency software user meeting tour

My newsagency software company last month announced details of a national newsagent user meeting tour to kick off on February 2, in Perth. Any newsagent is welcome to attend.  The agenda includes a business discussion as well as information on how to make the most from our industry standard newsagency software which has been selected by more than 1,750 newsagents. Click here for details.

Newsagents questioning their businesses and their future especially should come along. Prepare to be challenged about building stronger and more valuable newsagencies.

0 likes
newsagent software

Christmas gift card for newsagents

My newsagency software company, Tower Systems, is sending newsagents who do not use the Tower newsagency software a $500 gift card for use with purchasing the system.

Besides the practical value of the $500 discount, the professionally designed and manufactured gift card shows off the quality and type of gift cards many newsagents are now using in their businesses.

The same plastic card stock is also used by plenty of newsagents for customer loyalty cards.  On the back is a barcode linking to unique customer details. The loyalty cards are used for accruing loyalty points, rewarding frequent shoppers and delivering access to other benefits.

If you are not one of the 1,760 newsagents with the Tower newsagency software and you’d like a $500 gift card to help you purchase the system, please let me know at mark@towersystems.com.au.

0 likes
newsagent software

XchangeIT set to move on newsagents who fail to comply with standards

XchangeIT has written to newsagents who are not meeting compliance criteria in an effort to get them across the line and compliant.  Here is what they had to say:

Since the beginning of May 2011, we have been alerting you to the fact that your store has not been compliant in passing your ITCs for sales inventory data in your last six (6) performance cycles.  Good, accurate sales inventory data is critical to improvements in magazine supply.

Subsequent to this we have also sent out Headlines on the XchangeIT Newsagent Client program, again alerting you or your staff to the fact, and pointing out that if you are not compliant, then you are no longer eligible for the discounted fee that you have been given since joining XchangeIT.

On the 16th January 2012 we will be generating an Invoice for you for 3 months in arrears on your billing cycle which is $112.50 plus GST ($123.75), and from your next billing cycle you will be charged at the base rate being $425 plus GST ($467.40). If however in this time you do start passing your ITCs for sales inventory data, you will not receive this invoice and you will remain on the Discounted Fee of $200 plus GST ($220.00).

Additionally, newsagents who do not pass their Performance Cycle will no longer be eligible for EDI returns via the XchangeIT platform from the 16th January 2012.  This means you will have to enter your Returns Claims manually into each distributor’s web site which will take you longer, be prone to mistakes and lead to credits being delayed.

Our aim is to have all Newsagents on the discounted rate, and to see all agents pass their performance cycles,  if you have any questions please call us on 1.300.551.212 or email support@xchangeit.com.au .

Be part of the solution, not part of the problem – send accurate sales data.

While I support this move, I remain frustrated with the poor customer service by XchangeIT as I wrote about recently.

0 likes
newsagent software

XchangeIT lets newsagents down

I am frustrated that my newsagency software company, Tower Systems, continues to lose time working on XchangeIT issues for newsagents which have nothing to do with our software.  We have to do this because too often the help desk people at XchangeIT tell newsagents that our software is to blame – when it is not to blame.

It is my experience that the XchangeIT help desk can be quick to blame and slow to accept responsibility.  They act with the arrogance of a protected supplier.

The reality is that my software company has been around more than three times as long as XchangeIT.  They got their customers by demand, Tower Systems got its 1,760+ newsagent customers through hard commercial work.  Newsagents stick with them because they have no choice.  Newsagents stick with Tower Systems because they like the choice.

It is frustrating to have to spend time disproving an XchangeIT claim that the problem a newsagent has been having is to do with our software.  This waste of time ultimately hurts newsagents.

Every month the Tower team racks up hours of valuable help desk time researching these misleading claims and often fix the problem even though it has nothing to do with our software.  Newsagents ultimately suffer because this takes time away from us supporting and helping newsagents.

I have complained about the level of support and assistance XchangeIT provides newsagents with since the company was formed.  Occasionally things change, but not enough.  Each time there is a reason or excuse.  The overriding message is that they know better.  Occasionally there may be an apology.  Yet the behaviour of ill-founded blame continues.

I guess they continue to under resource and poorly manage their XchangeIT customer service because they know that my team at Tower, serving more than 50% of all newsagents with computer systems, will cover for them.  We demonstrate our support by not charging an XchangeIT support fee like some others do.  Maybe we should introduce such a charge to cover for the work we do on behalf of XchangeIT.

The quality of XchangeIT support is on my mind because of an incident which was resolved last week.  The XchangeIT people convinced my customer that it was a Tower problem, we lost hours working on this.  Even when XchangeIT realised that it was directly related to their software and how it was installed, they changed their story and said it was Gotch and Network related.  It was never a problem with Gotch and Network.  I was shocked that their spin to the newsagent.

The most recent incident  is a good example of the costs I am bearing on behalf of newsagents because of unjustified blame shifting by XchangeIT.

If you represent XchangeIT and are frustrated or upset that I have complained here rather than to you, think back to the many meetings, emails and calls about this issue and the level of service you provide newsagents.  It’s time you did something.  The current approach is unfair against newsagents.

0 likes
Customer Service

How not managing stock professionally costs newsagents money

Newsagents who do not track stock on hand with their newsagency software are more likely to experience employee theft in my experience.

The most common excuse is that newsagents don’t have the time to manage stock.  If managing stock reduced the cost of theft by, say, $10,000 a year, would you find the time.

My $10,000 figure is considerably lower than the cost of theft in an average size newsagency.  So, the benefits of managing stock properly and professional are considerable.

I can’t think of any reasonable excuse for newsagents not managing inventory using their software.  Bo not tracking stock on hand:

  1. Theft by employees is easier.
  2. Theft by customers is easier.
  3. Ordering is more time consuming.
  4. More ordering mistakes are made.
  5. Suppliers can more easily dupe you.
  6. The quality of business decisions is poorer.
  7. Your newsagency is harder to sell due to inaccurate business performance data.

So, the real question is – what is it worth to turn these situations round?  More than the cost of implementing management processes to ensure appropriate controls on inventory on hand data.

We demonstrate our professionalism as retailers in part by the way we manage business data.

Maintaining accurate business data is easy once you have established your business processes.  I’d encourage all newsagents to do this.  Your business and the channel will benefit as a result.

0 likes
Newsagency challenges

Warning on buying a newsagency computer system

As some newsagents have recently discovered, getting what is offered in the pre-sales process in writing is essential.  The amazing deal turned out to not be so amazing when they discovered that they had to pay a compulsory annual fee just to use the software and maintain access to their own business data.

  1. Get the offer in writing.
  2. Ensure that the offer fully documents what you have been offered.
  3. If there is a promise on annual support, subscription or access fees, make sure this is agreed in writing.
  4. Deals which sound too good to be true often are.

Sales people who are reluctant to document what they offer should be treated as you would an employee who does not want you to put in a security system or who does not want to use employee codes when transacting a sale.

There is one deal I heard of recently offering a complete system for less than the cost price of hardware and manpower offered.  The only upside a software company can leverage from such an arrangement is to charge more in the future for support or access to the software.  This often makes the great deal more expensive than other offers when considered over several years.

0 likes
newsagent software

Newsagents scrambling to avoid the XchangeIT penalty

XchangeIT has written to newsagents who have consistently failed their timeliness, quality and or other criteria for sending magazine sales data from their businesses.  This action was first forecast over a year ago with regular reminders published since.

A flaw has been discovered in the timeliness criteria which XchangeIT has agreed to review.  This is where a newsagent may run their end of shift process prior to the end of the day, for sound operational reasons, and have some trading on that date before closing the business for the day.

Colleagues at my newsagency software company Tower Systems are navigating this gap in how XchangeIT expects newsagents to operate their businesses versus how some newsagents do operate their businesses.  The gap means that some newsagents who do send data recording all sales are set to be penalised because sales data for a day could be split across two sales files.

Immediately on being informed of the situation XchangeIT agreed to investigate.

In the meantime, I urge newsagents to treat the issue seriously and review their EDI related processes to avoid the XchangeIT penalty.

Footnote: if only magazine distributors would accept penalties for consistently poor performance as they are now imposing on newsagents through their XchangeIT operation.  The fines would cripple them.  Double standards are on show here.

0 likes
Newsagent representation

Newsagency software help desk opportunity

My newsagency software company Tower Systems is expanding and looking for someone to join the help desk. While preferably based out of our Melbourne office, we would consider someone for our Sydney or Brisbane offices.

At Tower we are having a terrific year thanks to wonderful support from newsagents – hence this new role, the second in a few months.

The key requirements are excellent customer service skills, a commitment to help small business owners drive success and a desire to develop professionally.

With more than 1,760 newsagents using our software we are proudly the software company newsagents prefer.

0 likes
newsagent software

iPad use among newsagents growing

ipad-tradeshow.JPGI’ve noticed a considerable jump in newsagents talking about how they are using an iPad in their businesses when we caught up at the GNS Market Fair this past weekend in Sydney and the weekend before in Perth.  The numbers engaged with an iPad this year are up.

The conversation usually started when they saw the iPad on the Tower Systems stand running our newsagency software.  This was a live and practical demonstration of productivity gain opportunities for newsagents.

From in-car use for newspaper home delivery lists through to managing stock requirements when on a trade show floor, newsagents are embracing the iPad as a business tool.

Besides the productivity gains from broader use of technology, there is the benefit of being more aware of how the iPad and other tablet devices can be used in ways which could impact on core parts of the traditional newsagency business.

I have no doubt that playing with technology like the iPad in business will help these newsagents pursue change and be ahead of others who ignore how technology can and will change our businesses.

0 likes
Newsagency management

Your opportunity to support suppliers who support newsagents

gnsmarketfair.JPGThe GNS Market Fairs start this weekend with the Perth Market Fair on Sunday at Challenge Stadium in Mt Claremont. These trade shows provide an excellent opportunity for newsagents to engage with suppliers who support the channel.

You can see the suppliers supporting the GNS Market Fairs if you turn to the back page of the latest GNS Group News newsletter – the July 2011 issue. There, on the back page, are the logos of newsagent suppliers supporting the GNS Market Fairs and through this GNS and the newsagency channel more widely.

Newsagents can reasonably question the support of stationery, marketing group and software companies not supporting newsagents by supporting the GNS Market Fairs.

GNS is owned by newsagents. This is our company. It depends on newsagent and supplier support. This is why it is important for newsagents to know which suppliers support GNS and through this support the millions of dollars of newsagent funds invested in GNS.

Newsagents who want a strong newsagent owned stationery wholesaler should question dealing with stationery suppliers, marketing groups and software companies which do not support GNS. You can’t have one without the other. GNS relies not only on newsagent purchases but supplier support in other ways – such as at the GNS Market Fairs.

So, check out the back page of the GNS Group News newsletter and note the suppliers supporting the Australian newsagent channel through the GNS Market Fairs.  Better still, come along to the Fair in your state.

For the record, I own newsagent software Tower Systems which currently serves 1,752 newsagents and half of newsXpress which serves more than 170 newsagents. Both companies are thrilled to be participating in all GNS Market Fairs this year.

So, yes, I am conflicted in writing about this.  However, every supplier has had an opportunity to support GNS and newsagents more broadly.

Newsagents want to be treated as a channel.  They (we) want to leverage the strength of  numbers.  A great rallying place for this is GNS.  This is why supplier support for GNS and the Market Fairs is a fair point of judgment for stationery suppliers, marketing groups and marketing groups.

0 likes
Newsagency management

Rocky start for IPS data flow to newsagents

New magazine distributor IPS is experiencing a rocky start to business following some missteps around electronic invoice being data provided to newsagents.

Whereas XchangeIT acted as guide, standards enforcer and quality assurance master in dealing with Gotch and Network, they appear to have taken a more hands off approach with IPS.

A conspiracy theorist may wonder if this is because the Gotch and Network controlled XchangeIT does not want to be too helpful to IPS.  While I think it is too early to draw this conclusion, I am perplexed at the lack of control exerted by XchangeIT over how the folks at IPS, Rural Press IT people actually, have been working with the XchangeIT data structure.

XchangeIT took over the ownership, management and enforcement of magazine distributor / newsagent data standards years ago.  They have not fulfilled that role well in my view in relation to IPS.

I have privileged knowledge of what has been happening with IPS through my ownership of Tower Systems.   Tower, like I am sure other software companies, has faced a tsunami of calls from newsagents in how to handle incorrect invoice data from IPS.  The people creating the data for IPS, Rural Press IT, have clearly not understood the requirements of the industry standards data specification.

All of the time consuming challenges newsagents and software companies are facing this week around IPS data could have been avoided had XchangeIT applied the same diligence and scrutiny to the introduction of IPS as they have and do to Gotch and Network.

My people at Tower have been working with IPS and XchangeIT since first reported problems with IPS data.  We (myself included) participated in a national phone hookup last night which I think will get us all closer to resolving the issues.

I appreciate that XchangeIT will disagree with what I have written.  They will say that IPS is accountable for the data it puts into files sent to newsagents.  While that is technically true, they are the guardian and we all rely on them to play that role.

0 likes
Newsagency challenges

Increased Mandarin support and assistance for newsagents

My newsagency software company Tower Systems pioneered offering Mandarin support for newsagents seven years ago.  I am thrilled to note that Tower recently increased the Mandarin language support for newsagents with the creation of a new help desk role.

This new position helps all newsagents.  Mandarin speaking newsagents receive better service in a language with which they are more familiar.  Non Mandarin speaking newsagents have access to more  resources as less time is being spent on calls with Mandarin speaking newsagents.

Tower Systems finished the 2010/11 Financial Year in excellent shape, having welcomed many newsagents to its 1,700+ strong newsagent user community.  While some were greenfield sties, newsagencies without a system, many switched from other systems – POS Solutions being the most common newsagency system newsagents switch from.

One reason newsagents switch is the high quality of support.   The commitment of the company is evident in its investment in enhancing Mandarin support services.

0 likes
newsagent software

End of financial year checklist for newsagents

Today is June 30, a day which often passes newsagents by, many missing important housekeeping which is important to the business.  Here is a suggested checklist:

  1. Take a special backup of your business data tonight, make it your END OF FINANCIAL YEAR BACKUP and store it in a safe place.
  2. Print a debtors report, listing all debtors and their balances.  Actually, run this as a PDF and save paper.  It’s only the total which your accountant will need.
  3. Write off and bad debts.
  4. Write off any old stock which will never sell.
  5. Complete a stock take using your computer system ASAP and keep a record of stock on hand for your accountant.

While there are other tasks you could complete, there are not as essential as these two.  For example, I will be doing a year on year comparison and a quarterly comparison to check the sales health of my businesses.

My newsagency software company, Tower Systems, has been running end of financial year live online training for a few weeks now.  Its been a popular way for newsagents to ensure they are prepared.  there are two more today – anyone is welcome to join in.  Access is free.

0 likes
Newsagency management

Newsagents: beware of second hand computer hardware

I’ve recently heard of newsagents being offered second hand computer hardware as part of a cheap deal with newsagent software.  The spin usually is that a nearby newsagency has closed down just after they installed a system and their almost new hardware is available.

Newsagents being offered this deal should check to ensure that the person offering it meets legal requirements for dealing in second hand goods.  They should also ask for and verify the details of the newsagency which closed.  Oh, and get warranty details in writing re the secondhand goods.  And, get in writing the total cost of ownership of the software over, say, five years.

Someone once said that a deal which looks too good to be true often is.

Caveat emptor.

0 likes
newsagent software

Computer software opportuniity for newsagents

hp-pos.JPGTower Systems has an End of Financial Year Offer for newsagents not currently using the Tower newsagency software.

With more than 1,700 newsagents already using Tower Systems software, the company is the respected leader in the marketplace.  The closest competitor is POS Solutions with an estimated 600 newsagents using its software.  More than 230 POS Solutions users have switched to Tower in recent years.

Newsagents using the Tower software have access to newsagent specific software with excellent time saving and business building tools – backed by friendly and on time support and delivered with a commitment to ensure that the software up maintained to industry standards.  Tower is often first to meet new industry standards.  the company works closely with key newsagent suppliers to facilitate business efficiency.

Tower Systems is the only software company supporting newsagents consistently through sponsorship of key industry events such as Newsagent of the Year Awards in various states.

The End of Financial Year Offer is available to June 30 2011.

Disclosure: I am the owner of Tower Systems as well as a newsagent.

0 likes
Newsagency management

Fairfax set to go live with XchangeIT

June 27 is the target go live date for EDI files from Integrated Publication Solutions (Fairfax).  Thereb is plento to be done between now and then including testing with the various software packages and engaging in field testing.

I know plenty of newsagents will be happy that there is finally progress on EDI files from IPS (Fairfax).

0 likes
newsagent software
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011