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Newspaper distribution

Newspaper frequency changes don’t work says expert

Writing at Editor & Publisher, John K Hartman, professor of journalism at Central Michigan University,  says that frequency reductions for daily newspapers do not work.  This is interesting because of the speculation as to what is next for some Australian daily newspapers.

I am sure people in newspaper publishing companies here are looking at what has been tried in the US and elsewhere. Hartman’s assessment would be of interest to them.  Some of his comments mirror those of Greg Hywood, Fairfax CEO – that they will continue to publish as long as the numbers work. Right now for most Fairfax titles, the economic model is more a function of the demographic of their typical reader than sheer circulation volume.

My view is that it’s essential for newsagents is for to control when you get out of newspapers rather than someone else deciding this for you.

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Newspaper distribution

Where is the newspaper stand in your newsagency?

We do not have a traditional newspaper stand in any of my newsagencies. Newspapers located on retail shelving in the rear third of the store.

I was in a newsagency earlier this week where they had the old newspaper publisher mandated stand at the front of the shop, stacked with newspapers.

While this space is profitable, because of current volume, the sales trend will see it be loss making in the next few months. The newsagent is reluctant to move newspapers because it’s my bread and butter. I argued it’s also the bread and butter of the two local supermarkets, three petrol outlets,a nearby convenience store and national brand convenience store. Newspapers are not the point of difference they used to be.

The newspaper stand could be repurposed into a feature gift, homewares, plush or stationery display. Done well, featuring unique product, it could generate considerably more GP than current newspaper sales.

Prime real estate in a modern retail newsagency needs to call out, promote, what the business stands for.

Given where newspaper publishers have placed their products for sale, it is appropriate for newsagents to reclaim the old-style newspaper stand at the  front of the shop for making a more relevant and valuable retail statement. Newspapers work fine in less expensive less high profile space. Such a move can be done without losing a single sale.

Where are newspapers in your newsagency?

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Newsagency management

Newspaper publishers cutting circulation jobs?

I have heard from several newsagents of more redundancies at Fairfax and News businesses – in the circulation area, the part of a publishing business that deals with newsagents the most.  One report has the entire circulation department of one News Limited capital city operation being closed with responsibility transferring to Sydney.

Yesterday, Seven West Media announced 100 jobs are to go at The West Australian.

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Newspaper distribution

Queensland newsagents upset at change to News Limited terms

Queensland newsagents, still reeling from the impact of the suspended/cancelled T2020 newspaper distribution reorganisation, were shocked to be advised last week by News that they will be transferring from 30 day accounts to 7 day accounts.

With their marketplace particularly challenged, as identified by News Limited itself, the significant change in trading terms puts more pressure on newsagencies in Queensland.

While the News move is part of a national transition to a new circulation management model, I would have thought that the fragility of the Queensland distribution newsagent situation, made worse because of T2020, would have seen News delay the move from 30 day accounts to 7 day accounts.

News is making considerable moves to drive operational and financial efficiency within its business. It continues to deny newsagents reasonably opportunities to do the same in their businesses.

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Newspaper distribution

Is Fairfax against newsagents who pursue more efficient newspaper home delivery?

For years, Fairfax has taken a back seat on many issues relating to newspaper distribution and home delivery. Through then on/off T2020 discussions, fairfax has publicly said that they will most likely follow the News Limited lead.

Recent events suggest that Fairfax is no longer taking a back seat. Indeed, the company appears to have an new agenda.  I have two stories to share.

A newsagent in financial difficulty put their hand up for help. An agreement was reached to quickly sell the business to a larger distribution only operator. News Limited agreed,  Fairfax said they would consider it four weeks later. In the meantime, the financial situation of the vendor necessitated an urgent move. The purchasing distribution agent took on the business. Fairfax cancelled the contract, saying they do not recognise the larger distribution business. They handed the territory to another newsagent, a newsagent who will not make money delivering the lower penetration newspaper of the three daily newspapers delivered in this area.

The Fairfax decision does not make sense. It’s a break with how the company has operated for years. It could disadvantage customers. It certainly disadvantages the distribution newsagent as they now have some quite inefficient deliveries to complete – they will be driving down streets being serviced by the other distribution newsagent, a business with a greater distribution density.

The News Limited approach was more commercial. The Fairfax decision seems, from where I sit, to have been political and petty.

Here is the second story.

Fairfax was recently approached by a newsagent who had upgraded to the windows version of their newsagency software to help with what appeared to be a data discrepancy. I’m told fairfax representatives took a copy of the data back to their office, to match it up with the Fairfax data. I’m told Fairfax invoiced the newsagent tens of thousands of dollars based on what they found in the data. The newsagent asked for that issue to be shelved until the newsagent got the original data issue resolved. I’m told Fairfax refused and advised they would not assist in resolving the data issue until the invoice was paid. I’m also told that Fairfax threatened the newsagent with cancellation of the contract.

The newsagent did not pay and I’m told the contract is cancelled as of this week and another local newsagent found to do the deliveries of the Fairfax titles.

These two stories reflect, in my view, a backward step in much needed newspaper distribution consolidation.  For years, Victoria led the way forward. Now, it appears, Victoria is leading the way backward in terms of handling Fairfax titles.

Newsagents are left wondering about the Fairfax agenda and whether the company is hell-bent on breaking the newsagent channel. The company certainly seems to be against the larger distribution-only businesses, preferring to deal with smaller independent newsagents for its titles.

I wonder what News Limited makes of all this…

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Newsagency challenges

Update on the News Limited move on pricing in some parts of SA

News Limited approached me earlier this week following my post about their imposition of a new freight charge in some parts of South Australia. They provided a press release / statement on their position. I did not publish it here as it did not add to the situation and I didn’t want to put their case. The ANF in SA has published the News statement, unfortunately.

My view is that what News is doing is wrong. They are passing on freight costs selectively.  Also, they are not communicating clearly and do not appear to be communicating with customers – but that may come with time.  The ANF should be as clear on its position.

News should apply freight to all non suburban deliveries – user pays right?! Their selective approach is problematic for them. They could also have produced advice for newsagents to place with the products. Finally, they could have a cover price for the affected areas – to show it’s a News charge and not a newsagent charge.

There are times when publishers treat newsagents as agents and other times when they treat newsagents as retailers. They can’t have it both ways.

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Newspaper distribution

Disconnect between newspaper publishers and retail newsagents

The frustration among some retail only newsagents re the price rise from News Limited on Saturday could have been avoided has the company established direct communication with these retailers. Without geting in the way of the day to day distribution relationship between distribution newsagents and retail newsagents, a publisher / retailer relationship could help the newsagents and their customers.

Had I not received direct advice form News, at least one of my newsagencies would not have known about the price rise – the distribution newsagent is as appalling with such things as with allocation.

Other benefits could flow from such a direct relationship – like working together on retail customer loyalty programs that lock these customers into a more regular purchase of the newspaper.

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Newspaper distribution

While News Limited failed, for the moment, at newspaper home delivery consolidation, a group of newsagents have succeeded

Long before the aborted trial of T2020 in Queensland, one distribution newsagent group was ahead when it came to consolidation. Through T2020 they continued and right now they handle the daily delivery of more than 100,000 newspapers.  You read it right – 100,000+ newspapers, every day.

There is a model here addressing management and operational challenges real time, embracing learnings that newsagents and publishers could benefit from.

While News works on the next incarnation of T2020, I hope they look at this model which has been working and growing for years. To me it seems to address their needs – if only they’d let it.

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Newspaper distribution

Fairfax to take newspaper home delivery customers from Tasmanian newsagents

Representatives of The Examiner, a Fairfax owned daily newspaper serving Northern Tasmania, started meeting with newsagents four weeks ago to advise them that they, Fairfax, would be taking control of home delivery customer management.

Newsagents were shocked, it was the first they had heard of this move. Up until now, newsagents have managed all aspects of home delivery of The Examiner – customer billing, payment, stops, starts, run management.

I’ve been told that ANF was advised by Fairfax of the move in November last year. It has also been put to newsagents that the ANF ‘ticket off’ (approved?) the move back then.  Newsagents I have spoken with want to know why the ANF kept this news from them for four months.

UPDATE (1:15PM) The ANF has advised that they first heard of this in January and even then in extremely vague terms. They did not and have not ‘ticked off’ the Fairfax plans. I note that my original information came from someone told by fairfax. the ANF has written to Fairfax to correct this misinformation.

The Fairfax pitch is that they will take charge of the customers, manage all aspects of the account, promote subscriptions and promote an associated digital offer.  This appears likely to lead to a lower level of remuneration for newsagents.

Fairfax is offering nothing for the effective take over of the customers, many of whom have been acquired directly, through the hard work of newsagents.

Fairfax representatives have apparently said that they will give customers the option of paying for home delivery at the post office. Really?  I’d be shocked if they did this. there is a perfectly good retail network in place today – newsagents.

Fairfax is also planning to require all customers to pay in advance. They are apparently offering customers a voucher to sweeten this move.

As recently as five years ago The Examiner purchased territories off newsagents. Back then, the company considered the home delivery customers acquired by the newsagents had a goodwill value. This latest move could be seen as takeover by stealth. This is one of the concerns of newsagents – what happens to their goodwill?

The ANF is getting legal advice in Tasmania. This feels too little of a response too late. I’d prefer legal advice from those with national experience in this space, experience in dealing with publishers. This legal advice ought to have been sought in immediately Fairfax advised the ANF of their intentions.

UPDATE: (1:15PM) Based on what the ANF has advised their timeliness in getting a legal response has been good.

The Examiner prints between 30,000 and 35,000 copies a day. This low number makes me wonder about the viability of the print edition. Okay, as a regional newspaper the economics are different and a lower print run can be more profitable in this situation than in a capital city. Still, 30,000 to 35,000 copies is low. I wonder if the Fairfax move is to prepare the business for a switch to digital only or, at the very least, to reduce print days. They can’t easily do this unless they own the customers. Currently, the don’t own the customers.

I was in Launceston yesterday and spoke directly with several newsagents affected. Outside of their concerns about losing the customer accounts asset of their business and therefore significant goodwill, they explained the nature of their customers and an expectation that a decent percentage would not want the details held by their local business being handed to a national business.

Some said they’d expect to lose at least 10% of home delivery customers because of the move of account ownership from the local business to Fairfax.

Some said they expect Fairfax would lose more customers by requiring payment in advance.

These issues could have been fully canvassed through a more open consultation. As it has been done, the newsagents involved are stressed at the late notice grab for an important and valuable part of their business.

What is happening with newsagents in Northern Tasmania ought to concern all newsagents. Some of our own are being treated with disrespect and unfairly. They have been let down by their association.  Hopefully this blog post leads to more active engagement by all to treat newsagents fairly.

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magazine distribution

UK publisher launches app for shoppers to pay for newspaper

UK newspaper publisher Trinity Mirror has launched an App for handling the payment of newspaper purchases according to a report in the Press Gazette.

The pilot of the free PaperPay app for iPhone and Android was launched this morning. It enables users to pay for The Daily and Sunday Mirror in advance, and then use a barcode on their phone to buy papers in newsagents, rather than with cash.

Trinity Mirror says the service can be used in more than 47,000 newsagents that have PayPoint or Payzone technology. As well as a pay as you go service, weekly, monthly and annual subscriptions can be purchased.

This is a smart move as it brings to regular over the counter shoppers the financial benefits of home delivery subscriptions. From a newsagents perspective it may not be so great as they may make less per newspaper sold – I am not sure of the details.

It would be easy to get a similar program up and running here – either through an App, a coupon program or a mixture of both. It would be easier to implement this type of program through newsagencies than the other retailers selling newspapers.

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Newspaper distribution

News Limited preparing for migration of newspaper subscriptions in NSW

News Limited has advertised a role key to their implementation of newspaper subscriber migration. The role, Change Manager – Subscription Migration Project jobs in Sydney NSW 2000, was advertised a couple of days ago.

Migration is separate to T2020 but does form part of the overall goal of T2020 – to make newspaper distribution more efficient for the company and more viable for newsagents.

Migration when first announced in South Australia some years ago was flawed. News did listen to newsagents and adjusted their plans. This was especially important to retail / distribution businesses that rely on newspaper home delivery payment traffic to support viability of the retail operation.

This latest advertisement for a change manager shows that Migration in NSW is close. It also provides timeline guidance on the project.  The ad included this information about the role:

This position will lead the development and implementation of a change management plans in support of the Subscriber Migration project. The primary focus will be developing and coordinating the implementation of the change management and communication plans to facilitate the collection and migration of subscriber data from Newsagents to News Ltd.

The change manager will work closely with senior stakeholders within the business as well as with newsagents and their state organisations to analyse issues, develop approaches and deliver change management outcomes in line with defined program objectives.

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Newsagency management

Further information from News Limited on T2020 changes

Further to my blog post this morning about News Limited’s T2020 newspaper distribution consolidation trial, News Limited published further information, in a letter today to newsagents. They have also published a Q&A document.

Tomorrow, a new website, www.news4newsagents.com.au, will be launched. It will be a forum for News to communicate with newsagents on a range of initiatives, and newsagents will be able to send their comments to us through a feedback form on the website.  Newsagents also have access to direct email contact: newsagents@news.com.au.

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Newspaper distribution

Opportunities for newsagents in the News Limited T2020 decision

I spoke with Catrin Thomas – Director of Retail Circulation at News Limited, this morning about their decision to suspend the T2020 newspaper distribution consolidation trial in Queensland.

The trial itself is what has led to the decision to suspend T2020 as planned and to move to a more free market approach. News will shortly announce details of how newsagents can engage in their locally-driven territory consolidation models. They will also launch a new website to support this.

Catrin advised in the call that News remains committed to consolidated territories but that they will not set a size requirement for a consolidated territory.  They are also committed to their public statements regarding financial viability of distribution newsagents.  News also remains committed to the separation of distribution and retail activity.

Newsagents will be invited to submit proposals to News.  While I expect that Associations will suggest that proposals come through them, I’d encourage newsagents to develop plans and submit them directly through processes to be announced by News.

The challenges encountered in the trial remain and some newsagents who do not navigate these challenges will find themselves in difficulty in the more competitive world that will now emerge. The extent of difficulty will depend on geographic situation and other factors. News is not saying this – it’s purely my observation / speculation.

What has changed are the trial itself in Queensland and the roll out by News down the Eastern Seaboard. The goals and principles remain the same. The move to a more market driven approach will provide proactive newsagents an opportunity to move sooner.  It also opens up the prospect of competition from outside a territory. This could play out well for existing newsagents but it could equally intensify the challenges they face.

There is no reason for a distribution newsagents to adopt a wait and see approach. Now is the time to be on the front foot, pursuing change, pursuing what is best for your business. No one can tell you what to do in terms of your business other than the fact that you now need to do something – the timing is yours to embrace.

Footnote: It’s been suggested to me that one or more associations may create a commercial entity through which newsagents bid for and or drive consolidation. I’d see such a move to be outside their role as an association. They have no role to play in operating commercial enterprises.

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Newspaper distribution

News Limited suspends T2020 newspaper distribution consolidation

News Limited has announced the suspension of the T2020 territory consolidation trial under way in south east Queensland.

News Limited now moves to a voluntary consolidation model.  This is particularly appealing to Victorian newsagents who have been at the forefront of territory consolidation for years and have been held back by the News T2020 process.

While there will be speculation about the reasons for the decision by News and claims by associations that they have driven this decision, I am certain the company made the decision because it suits them at this time. This is their decision and not something forced on them by anyone.

I see it as a pragmatic decision based on the challenges experienced in trying to consolidate territories in a state where newspaper home delivery has been in crisis for some years. Just over a year ago I claimed that the company was in crisis in relation to newspaper home delivery. They vehemently denied this at the time and engaged in an offensive pitching that they had a plan. Months later, T2020 was the plan.

While T2020 as planned will not happen, I am certain we will see consolidation, maybe faster than the company actually planned.

The needs of News Limited which were driving their pursuit of T2020 remain. Newsagents need consolidation. Indeed, many need the ability to hand back their runs urgently.

In the meantime, there are newsagents in Queensland in the middle of consolidation under the T2020 rules /guidelines who need attention from News. There is even an argument for compensation given the commercial impact of the now suspended changes that they had had ti live with for many months. These newsagents need independent professional advice.

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Newspaper distribution

Here’s what newsagents want from newspaper publishers to help drive sales

In my survey last week I asked: What marketing initiatives or incentives would you like from newspaper publishers to help you sell more newspapers? Here are all the responses to this question:

  1. If it did not cut the commission.
  2. In-store prizes, ad on sale incentives, combos etc
  3. Sell the paper to us at the same ridiculous price that some subscribers pay for their paper. We could preorder with no returns for a 7 day at $2.70, $3.95, $4.95 per week.
  4. More positive attitude to newsagents
  5. Stop delivery agent under suppling so you have product to sell after lunch time would be a good start before instigating any marketing initiatives
  6. Work on a tier system for better profits/margins
  7. Pair 2 titles together, ie our local paper retails $1.50 and smh retails $2.00 both fairfax publications sell 2 for $3.00
  8. Retail newsagent only special offer, with a healthy margin to offer
  9. Extra commission because 10% is nowhere near enough.
  10. Margin must be 25%, promotion items must be 25%. The rest we can do ourselves.
  11. Assistance with meeting delivery costs.
  12. Better content, more local content, more incentives for customers to buy the product
  13. SPECIAL PROMOTIONS/COUPONS/COMPETITIONS FOR READERS
  14. Promote Newsagents to public via Newspaper or via Commercial. Incentives – Commission on all promos to be 50%, Initative – Remove atrocious attitude towards its core customers which are Newsagents, these are the faceless men & women who we do not see not the Reps.
  15. Need to have less outlets so it becomes a destination not in every servo/corner store
  16. Increase the supply so we don’t run out. When people find you have run out they stop coming Advertiseheadlines on local radio
  17. Ability to sell deals/packaged subscriptions at the counter
  18. Being able to sell them (retail) in Week Blocks would work well.
  19. Reliable supply would be a good start. Margins need to improve. If we sell 400 papers a day thats good, but we need more than $80-90 in GM to justify the prime space. The publishers should advertise the masthead in the other media more ( e.g. radio, web etc)
  20. More margin. Nothing in our store should be less tan 30% margin. Punctual supply (it is an early morning product). More advertising of Newspapers on other media. Building an emotional link between customer and newspaper brand.
  21. for them to be supplied on time and the correct quantity. Good merchandise material, ability to seek commercial customers by giving them two weeks free papers delivered , once they see the benefits they usually continue paper delivery for years
  22. In SA News Ltd runs promos giving a free paper with a $2 purchase instore, only after 2pm, normally during the week. (a waste of time) Other channels, supermarkets and conv run these promos all day, normally weekends. I’d like to be treated equally with these promos. I’d also can’t understand why my competitor is my agent and shares in my profits 50/50 simply for delivering papers the last 1% of their journey. I prefer to run out of papers rather than paper for the labour cost on a Sunday night of processing the return. I make approx $120/wk from newspapers(on a good week) and spend $20 to $40 on labour processing returns.
  23. Better posters, subscription drives, more frequent giveaways and promotions
  24. Position newspapers as a premium product, for example in an office, junior employees read news on-line; senior managers get daily newspapers on their desk.
  25. When they have incentive programs like the recent one for news ltd for the children’s books that they not supply more of the books to Coles than they do us. As everyone came to us to collect the books as we had the ability to hold books and papers for them. Make sure they look after newsagents before chains like Coles.
  26. Reward customers for purchasing paper. Something like the old accident insurance that subscribers received about 40 (or more) years ago.
  27. Do special promotions for newsagents only, be it linked with magazines or free stock.
  28. Cooperation firstly then perhaps we can look at initiatives
  29. “at your local newsagent with your paper you will recieve x (special bonus) but only at your newsagent” etc etc – showing we are the specialist retailer of print products.
  30. DEALS
  31. The promo toys etc they do with the papers would be better if we actually got a better margin for them.Would like to see them actively push news agents in their advertising
  32. Our biggest day to day problem with papers is distribution quantities, i would like more control each day, so that we get the numbers right. sales targets – $$ for increase in sales per week : same time last year.,
  33. More sales margin
  34. Fair remuneration for home deliveries would incentives the me to chase new customers – current levels of remuneration actually discourage that! Promotions that use or encourage educational involvement e.g. Attenborough series
  35. Be reliable with timing delivery of papers to us. Have extras available within an hour. produce an online app to help us track sales taking into account weather events, school hols, sports events etc etc.
  36. Higher commission
  37. The West Australian used to do a 5-week car giveaway. The customers would then have to come back to the store to put the envelopes in the box. Their new campaign is just bingo, where all they have to do is buy the paper.
  38. I would like to have simply more margin. 12.5% is not enough. Reliable delivery (They’re so often late) would also be helpful. For us newspapers is an early morning product. We promote gum, quik-eze and enos, small confectionary and milk based drinks alongside highlight magazines
  39. Less low margin promotions like kids books and aust day hats which chew up newsagents time. If their going to do promotions stick to the bingo’s and car give away’s where the customer has to buy weekday papers to enter and the newsagent isn’t involved.
  40. Reasonable 25%+ margin (the current 12.5% does not even cover costs_ – Control over supply (not all distribution newsagents are good operators and many newsagents aren’t selling their full potential because of chronic undersupply) – Gradual price increases to abate the effect of declining sales on profitability
  41. They need to stop free papers for a start. They need to stop cheap – shitty give aways that belittle the price of the paper. Customers think the paper is desperate for sales by DVD giveaways etc. They tarnish their own brand. They need to reward customer loyalty of home delivery with special giveaways ONLY for those that regularly purchase papers NOT the whole world. They could run sweeps – where each day you get a code – could run for weeks – need the whole code (issued bit by bit in daily papers) to win a prize. Like Hallmark card promotion, purchase 20 papers (and get card stamped) get a free paper etc etc. Even without commission structure changing, if it encouraged an increase in newspaper sales (rather than decrease) it is off sets the lack of commission by more sales. Also it does not encourage people to download the paper if there is not any reward system or giveaways.
  42. Pay me more money you only get what you pay for no money who cares
  43. Promote newsagents as an outlet for there paper
  44. CONSTANT , REGULAR SUPPL,Y WITHOUT SHORTAGES WOULD BE A GOOD START
  45. Higher comm
  46. There should be a sliding scale commission basis, the more an outlet sells the more commission they get. This will weed out the poor performers and encourage all agents to better handle the product. At the moment there is no incentive.
  47. To have adquate supply of papers so that we are not sold out by late morning. This is the easieast way to lose customers. To consider the supply we request for holiday times (we are a big tourist area) and not cut supply to what they think we should have. We are finding people still like to read the paper either early before work or first thing in the morning to read over a cup of coffee. To accept that sales every day are different depending on the activities in the town, tour buses and to accept that newsagents with subagents serving hotels have different day requirements. The Advertiser ran a very successful book promotion but ran out of books in the country whilst the city had plenty. Good promotion and Advertiser sales spoilt by lack of product.
  48. CUT THE GOSSIP PAGESRUN PM CBD EDITIONS.DONT PRINT NOSENCE POSTERS.
  49. Bundle offers eg 5 papers to a business eg lawyers,doctor surgeries, cafes etc. for a reduced price. i think proactive newsagents would push and make up their own deals if their was a better commission base for newsagents
  50. Marketing is ok but we NEVER get enough supplies and topups never have extras so we have stopped trying
  51. Just advertising on TV would be a start with a subscription offer.
  52. EARLIER DELIVERIES, NO GRAVEL RASH ON PAPERS. INSERTS IN 99.9% OF PAPERS NOT 80%. FORGET SENSATIONAL JOURNALISM
  53. A Representative to call occasionally to keep us informed – as Retail only info is limited.
  54. I would like to see engagement on a retail level. It frustrates me when i see papers being offered to those outside the channel at better rates than we retailers ever get i.e. get 50% etc etc
  55. None, I want a higher GP to make it worth chasing more sales
  56. Supply more papers.
  57. More promotions, better content, more local news,
  58. No more discounted offers. No freebies at movies, gyms etc.
  59. Valid content.
  60. Emphasise quality & value of product. The closer newspapers get to being free, the lower their perceived value.
  61. None, get them here on time!
  62. Have a direct relationship with us for diving sales and not through a distribution agent.

A useful cross-section of feedback for newspaper publishers.

For me, the key is a direct publisher / retail newsagent relationship.

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Newsagency management

What is it with newspaper publishers?

The people at The Newcastle Herald wrote to newsagents at the start of this week announcing a price change from next Monday. They didn’t tell the software companies though. The people who help newsagents with what is significant change were kept in the dark – left to find out by accident.

It’s frustrating that publishers often only think of themselves. Involving others could result in better handling of their product. It’s what partnership is about.

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newsagent software

Giving up the newspaper home delivery customer connection

As News Limited and Fairfax migrate more newspaper customers from newsagent acquired newspaper home delivery to publisher controlled subscription arrangements and the management of distribution of newspapers moves from inside the newsagency shop to separately run depots, newsagents need to let go of their customers.

Losing ownership of the direct customer relationship is proving difficult to navigate for some newsagents. It won’t work some say, how can they help customers from so far away others say, they don’t know our area others day.

None of this matters of course as the decision is made and the course of action set. Newsagents need to focus on letting go in a way that respects their long-term customers yet serves the business decision made by newspaper publishers.

The new arrangements don’t give newsagents the opportunity to provide the level of customer service they have provided in the past. This is the way of the world being pursued by newspaper publishers. So, let go in a way that helps customers understand and still think good of the newsagency.

Newsagents facing this, losing ownership of newspaper home delivery customers at their shop, need to develop a strategy for navigating this. Such a strategy needs to have at its heart good customer communications – explaining what is happening and why and how the business will continue to serve them in other ways. At the same time, the newsagency should have a process or mechanism of keeping any predominantly newspaper delivery customers engaged with the business – for the future of the business.

I see too much energy being spent complaining about what is happening and not being spent on how to mitigate the situation for the newsagency and its customers.

Newsagents transitioning to retail only need to focus on that and let go of distribution customers. Newsagents focusing on distribution need to be clear about what they can manage and control and focus on that. Publishers who want to own the customer need to take responsibility for that and own it through professional processes that do not harm the supply and service chain.

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Newsagency management

How we handled running out of The Age

We ran out of The Age (again!) before lunch on Saturday. Our supplying newsagent, also a retailer in the shopping centre, refused us extra stock so we purchased most of what they had left, at retail. They were itching for a fight but our team member making the purchase stood their ground.

Given either their inability to ensure they can meet demand or a failure of Fairfax to ensure reasonable supply to the area, we will continue to do this – buy stock from our supplying newsagent leaving them with nothing if necessary. Eventually the message will get through.

We refuse to be without newspapers at lunchtime on a busy Saturday.

Our preparedness to take this action shows that we see newspapers as playing an important role, still, in today’s retail newsagency publisher disinterest notwithstanding.

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Newsagent suppliers

Why newspaper retail and distribution need to separate

One of my older newsagencies did not get newspapers today until 9:30am. Our distribution newsagent operates a retail newsagency in the centre. Their excuse was that they short supplied … not so short that every other retailer including themselves didn’t have plenty of stock.  This is the same distribution newsagent who has blocked access to a raft of titles and about whom we have had to complain to publishers regularly with only mediocre success.

No wonder the newspaper publishers want to change the distribution model.

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Newspaper distribution

Fairfax delays in NSW again today

Many NSW newsagents are having a tough Tuesday with Fairfax newspapers hours late. There is speculation that the delays are being caused by industrial action at fairfax. I have no idea. What I do know is that an unreliable daily newspaper is a product regulars can learn to do without.

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Newspaper distribution

Tower Systems community expands with acquisition of another newsagency software company

I am pleased to share this announcement about the acquisition of the respected MrNews software business serving Western Australian newspaper distribution newsagents by my Tower Systems company.

Tower Systems purchases MrNews newsagency software, reaffirms confidence in newspaper distribution businesses

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

MrNews serves in excess of one hundred home delivery newsagents in Western Australia.

Tower Systems will assume full responsibility for the MrNews software and customer service from early next month.

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

“We are thrilled to have found a place where MrNews users can be confident of access to good software and service” commented Arno Staub and Graham Kilmurray, the owners of MrNews. “We are looking forward to working with Tower, training their people and introducing them to our happy customers.”

The Tower development team has been working with West Australian Newspapers to be ready to support changes to their home delivery management and account payment model.

The acquisition, the second of a newsagency software company this year by Tower Systems extends its newsagent customer numbers to more than 1,900. The next largest newsagency software company is POS Solutions with an estimated 600 newsagents as customers.

“Newsagents concerns about T2020 and other challenges facing home delivery should see this investment by us as a show of faith in the newsagency marketplace and home delivery in particular.” Commented Mark Fletcher

The Tower software serves newsagents in newspaper distribution, sub agent management, retail management, stock control, theft management and supplier integration.

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

Newsagents using the MrNews software are welcome to contact MrNews or Tower Systems for more information. Once the hand over has been completed Tower Systems will email and mail help desk contact details to all MrNews customers.

I mean it when I say that this acquisition is an indication of my confidence in the distribution side of the channel. The opening of a new shopping centre newsagency (without lotteries) this week in which I have a 50% share is evidence of the confidence I have in the retail side of the channel.

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Newsagency management

SMH MIA

The Sydney Morning Herald is missing in action today in too many regional centres in New South Wales. On a day when newsagents are experiencing a traffic surge because of the OzLotto $100M jackpot, the opportunity for an impulse purchase of the SMH is lost. One newsagent commented that Fairfax does not seem to care as much as they would have years ago. They said: it’s as if they want the print product to die.

6 likes
Newspaper distribution

Updated T2020 communication for newsagents from News Limited

Click here to see the updated FAQs from News Limited T2020 and here to see the letter sent earlier this week. I have spoken with Catrin Thomas this week and am assured that News is genuinely listening to and engaging with newsagents through this trial in Queensland.  I saw this happen first-hand earlier this week between a newsagent and News to address a concern over the recently announced delay.

Having been involved in this process since it began three years ago I’d note that the approach of News over the last six months is completely different – more engaged with newsagents, more flexible and more transparent – than in the two and a half years prior. It is good to see News working direct with newsagents. This is a project to be worked on operationally by the contracted parties and not through a third party.

I have a vested interest in T2020 with 1,700+ newsagents using my Tower Systems newsagency software, many of whom offer home deliveries. I have no deal with News.

I understand what they are doing and why. It is necessary structural change. Many newsagents saw it coming years ago and made appropriate business decisions. While this is not an I told you so, I’d note that I sold my newspaper home delivery run in late 2006. I explained here why I did it and what I thought would happen with runs.  Associations and brokers had this same information. Industry leaders had the information too. Yet many let newsagents steam ahead thinking it was business as usual for newspaper home delivery.

Newsagents are complaining about News Limited and what they are doing with T2020 should look back at themselves and the newsagent leaders over the years and ask why they did not act before.

11 likes
Newspaper distribution

Are newspaper publishers offering deals to cafes?

I was contacted by a retail newsagent yesterday concerned at their loss of a long term account with a cafe juts a few doors away from them.

The distribution newsagent in town has offered the cafe three copies of the Herald Sun and three copies of The Age seven days a week for  just over $13.00 a week – an amazing deal by any measure. The retail only newsagent can’t compete, he can’t retain his long-term customer.

The deal makes me ask if anyone is aware of deals from Fairfax and News that would enable this offer to be put. I can;t see any subscription offers that make such an offer work.

If there is no such deal then I can’t see how the distribution newsagent makes such an offer viable. They’d have to be getting the papers for a few cents each.

Am I missing something here?

5 likes
Newspaper distribution