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Social responsibility

Officeworks does not have the lowest prices every day

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Ethics

Does the Maxim cover go too far?

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

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

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

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

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Ethics

Aldi takes on EPAL over EFTPOS fees

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

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

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EFTPOS fees

Proof of a sick newspaper home delivery model in Australia

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

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

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

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

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

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

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

This is why newsagents are handing back their runs.

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Ethics

Cheeky National Australia Bank

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

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

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

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

And banks wonder why we don’t like them!

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Ethics

Courier Mail newspaper covers Daniel Morcombe front page story

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

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

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

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Ethics

Queensland newsagents face 100% increase in insurance premiums

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

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

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

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

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Ethics

Each New Idea sale to raise money for Daffodil Day

new-idea-daffodil.jpgEach copy of New Idea sold next week raises ten cents for the Daffodil Day campaign being run by the Cancer Council. This is an important campaign, raising much needed funds. The folks at New Idea have produced an A3 poster and an 5 flyer for newsagents to use in promoting this. I am promoting the fund raising campaign now, in advance of Monday’s on-sale. I’d encourage other newsagents to download, print and use this collateral now.

Click here for the A3 poster.

Click here for the A5 flyer.

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magazines

News Limited hurts small business newsagents with free newspapers

I like the coffee from Cibo Espresso. I don’t like the deal they have reportedly done with News Limited which, if what I am told is true, will see News Limited daily newspapers available free from Cibo Espresso outlets.

This deal of free newspapers will apparently run for three weeks starting Monday.

In one instance of which I am aware, a Cibo Espresso outlet has cancelled their order for five newspapers sourced from the nearby retail newsagency to take one hundred free newspapers supplied through the distribution newsagent.  The newsagent in the shopping centre loses a customer.  And while the distribution newsagent wins a customer, at what cost and for what margin?

Every time a newspaper publisher gives away a free newspaper they devalue their product in the hands of the consumer.  They also devalue the newspaper distribution and retail networks established to support their product.

I have seen how free unused newspapers thrown away at a third party location.  I have my doubts about how ‘sales’ are counted.  Are these audited sales?

Advertisers are sold advertising space on the basis that the paid for newspaper is a premium product, readers commit to the product by purchasing it.  Well, thanks to deals like this one at the Cibo outlet, more and more readers are not paying for their newspapers, making it less of a premium product.  Maybe this means they treat it differently … read it less.

I understand the need for publishers to experiment with deals to support circulation.  I am frustrated that they focus on these giveaways while ignoring engaging with retail newsagents on building paid for sales.

The retail newsagent network is an excellent front line for driving sales yet outside of promotions like the recent Harry Potter campaign, they do not engage, certainly not in a smart, fair and business like way.

The next time a News Limited editor thinks about having a crack about the lack of support for small business from government, they ought to take a look at their support, or lack thereof, of small business newsagents. 

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Newspapers

Arrogant Visa refuses to support the Australian economy

A report in The Australian Financial Review on Monday last week quoted Adam Wand, head of public affairs for Visa, the global credit card company, saying it could not collect GST for purchases made by Australian shoppers online in response to a query from the Productivity Commission.

This is Visa telling the Australian Government that it will not act as a tax collector. If we retailers act as tax collectors, collecting GST from sales in our businesses, why not Visa? They can see where the purchase is being made and where the goods will be delivered.

I see this as an important issue as it could capture billions of dollars in additional revenue for the federal government. This revenue windfall would reduce pressure on Australian taxpayers, including newsagencies. It would also deliver a fairer playing field in terms of online versus bricks and mortar shopping.

It Visa was a good corporate citizen it would have responded differently to the request from the Productivity Commission.

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Social responsibility

Backlash against News Corp. media outlets

As the fall out of the UK News International phone hacking scandal continues, a website blocker for Firefox has been released which blocks access to News Corp. websites including Australian websites:

theaustralian.com.au
news.com.au
truelocal.com.au
heraldsun.com
adelaidenow.com.au
dailytelegraph.com.au
couriermail.com.au
weeklytimesnow.com.au
perthnow.com.au
mxnet.com.au
alphamagazine.com.au
newsspace.com.au
careerone.com.au
carsguide.com.au

There is another blocker available for Google Chrome.

The blockers are getting plenty of coverage on twitter, the blogosphere and news sites.

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Ethics

The ethical test for all outposts of News Corp.

All reaches of News Corp. are under the spotlight following the phone hacking scandal and evidence of the cover up by the organisation including admissions at the most senior level.

The hacking of phones, thousands apparently, and acknowledgment by News International boss Rebekah Brookes of payments to police in the UK and an acknowledgment by James Murdoch of approving as  payment to victims in apparent return for silence naturally calls into question the ethics of this worldwide media company.

As Margaret Simons pointed out yesterday at crikey.com, there are implications for News Ltd here in Australia.  Simons rightly honed in on the company’s Code of Conduct for journalists because John Hartigan, Australian Chairman, pointed to this in a communication relating to the UK scandal.  Simons called for journalists to respond on their knowledge of the Code. Check out some responses at The Content Makers blog.

Given the declared behaviour it is appropriate that the spotlight is on all News Corp. businesses including their Australian businesses.  Since News appears to have sat on or hidden the extent of this scandal for many years we can only wonder what else there is to be discovered.

Australian newsagents could consider the ethics of News in the context of their cover price policy which has left us earning less in real terms today than ten years ago – while they have looked after themselves and lifted advertising rates, they have reduced what we earn at retail and for home delivery.  An organisation committed to ethical behaviour would ensure that its pricing decisions were fairer to working families.

We could look at newspaper home delivery fees through the prism of ethics – they have fallen in real terms as I wrote here recently.  News Limited has presided over distribution newsagents earning less.  An organisation which claims to operate ethically would ensure that it approved and facilitated a fair price for those working hard on its behalf as newsagents do.  Instead, News caps what newsagents can earn, denying newsagents reasonable business levers which reflect on local conditions.

We could also consider the ethics of News in their approach to the rationalisation of newspaper home delivery.   The newspaper distribution system which we have today is a system which they have controlled for decades.  Many newsagents are losing their family businesses because of the control News exerts over what they earn.   Family assets are disappearing as newspaper distribution is rationalised by News as they create a new model to serve their financial needs.  This rationalisation looks set to escalate over the next six to twelve months.  An ethical organisation driving rationalisation and laying off employees would have an obligation to compensate the dismantling of the system it created.

Maybe these three examples do not reflect ethical failure – others can decide that.  The do, however, reflect a lack of care for and commitment to socially responsible behaviour by News.  Yes, they are a business with a sole purpose of driving shareholder value.  But they are also a large part of the Australian community and it is reasonable that we expect them to act in a socially responsible way to families and the wider community.

While these behaviours do not compare to the apparent illegal behaviour in the UK, they do reflect on the ethics of the company and the regard (or otherwise) it has for its distribution channel and the community in which it exists.

Of course, News shareholders would disagree.  They would say that the company is doing what it needs to do to drive its costs down.  They would say that it is also keeping the costs for consumers low.  Maybe so.  However, on the income side, the non cover price income side, it is not showing a concern for costs which flow on to consumers.

It is possible that the ethical failure exposed by the UK phone hacking scandal is part of a broader ethical weakness in News. Twitter, blogs and even mainstream news outlets are lighting up asking questions and turning on spotlights.  While News outposts around the world will be unhappy and uncomfortable with this, it is appropriate.  If they have nothing to hide they have nothing to be uncomfortable about.

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Ethics

The businesses wanting compensation from a price on carbon should talk to newsagents

The calls in recent days from various business sectors wanting compensation for the decision by the federal government to place a price on carbon are interesting.  Big business polluters want compensation for the impact of this policy decision by government.  They look set to receive this compensation.

Newsagents were impacted by a government policy change in 1999 when the distribution of newspapers and magazines was deregulated.  We were not offered and did not receive compensation.  We were left to fund the cost ourselves.

It says something about the small business commitment (or lack thereof) of politicians (of all colours) that small business family run newsagents receive nothing for seismic policy change while pollution generating big businesses are set to receive hundreds of dollars of compensation for introduction of a price on carbon.

I am disappointed that politicians appear set to get away with once again showing that small business does not matter. Shame on them and shame on us for letting this happen.

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Environment

UK News International phone hacking exposes ethical failure

The News International phone hacking scandal has gone from bad to worse with allegations of police investigations having been hampered by News representatives in pursuit of stories.   News is seeing a commercial implication with advertisers like Ford withdrawing advertising as a result of the latest revelations.  Kent News is reporting planned protests at retailers selling News International titles.

Beyond the appalling hacking impacting so many people in the UK is the apparent cover-up by News International for several years.  This cover-up is apparent in the reporting, or lack thereof, here in Australia of what is the biggest newspaper related scandal in decades.

The hacking and the cover up represent an ethical failure for which News at its highest levels globally must be accountable.  To date it has sought to avoid such accountability.  The repeated denials by News leave it open for other conclusions to be drawn.

Listening to the latest on the story yesterday made me wonder if I would take their titles off the shelves as stand against their actions.  If an advertiser can distance themselves from unacceptable behavior by not supporting a product and or company then why not the retailer?

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Ethics

Who is Mike Smith and why does his opinion matter?

Mike Smith has been getting a bit of attention in the media recently.  First this week he was on the attack about the government decision to not let the Singaporeans buy the commpany which manages the Australian Stock Exchange.  Next, he was saying that the federal government is weak.

It bothers me that the opinions of the CEO of one of Australians big four banks is considered news.  His sole interest is the share price for the ANZ.  Corporations law dictates this.  What is good for an ANZ shareholder, and his personal hip pocket, may not be good for Australia or the businesses which are tethered to the ANZ through home mortgages and small business lending facilities.

The ANZ gouges its customers at every opportunity.  Its decisions and the decisions of the other big banks do more harm to families and small businesses than anything this or other governments have done wrong.

I wish that Mike Smith’s opinions did not get the news coverage they do.  I would prefer to see a more balanced representation of opinions on matters like the possible sale of the ASX to Singaporeans.  Personally, I don’t see the sense of this.  The operation of the ASX is fundamental to the economy.  We have sold off enough of this country, why sell off our stock exchange as well?  Who benefits.  Okay, maybe the shareholders.  But do investors benefit?  I don’t see it.

Mike Smith and his big bank CEO colleagues need to be put in their place.  We should stop paying attention to what they say.

I feel better now.  I’m going out for breakfast.

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Ethics

Small retailers blocked from returning unsold milk thanks to Coles and Woolworths

As a consequence of the milk price war between Coles and Woolworths, I have heard of independent retailers no longer permitted to return unsold milk according to a friend who stocks milk in his business.

So, in effect, independent retailers are carrying the costs of hefty discounts to Coles and Woolworths, along with the farmers.

Australian consumers need to remember that small businesses in this country employee more people than big businesses.  They can only do this as long as they are supported by consumers.

The milk and bread price wars being run by Coles and Woolworths are not socially responsible.

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Ethics

2011 AFL Tipping Competition now open

afl-tipping.jpgRegistration is now open for the 2011 Tower Systems AFL Footy Tipping Competition. Entry is free to ALL newsagents and suppliers.

This year we have changed the scoring system to introduce a Margin Game. If you correctly tip the winning margin in a margin game you will receive 3 points. 1 Point for the correct tip and 2 bonus points for guessing the margin! This means that there is a possible 10 points per round up for grabs! Click  to get started.

Prizes for the competition: First $250.00; Second $100.00; Third $50.00.

To join, please follow these instructions:

  1. Go to the Tower Systems web page www.towersystems.com.au.
  2. Click on the AFL footy tipping logo at the bottom.
  3. The footy tipping page will then load
  4. Click on Join, at the top of the menu on the left hand side of the screen.
  5. You will then be asked for a password to join, which is ‘retailer’
  6. Click on OK
  7. Enter in your Name, Email and Company Name and click on Submit Details. (Note you only need to enter information on the fields highlighted with an *)
  8. Make sure you note down your alias and passwords so you can log in again later, and enter your tips!

Each week, go to the Tower Systems’ web site – www.towersystems.com.au – click on the AFL button, enter your username and password and tip away.

Rules:

  1. Tips must be in by 5:30pm EST on the evening before the first game of the round, either Friday’s or Thursday’s. (No late tips will be accepted this year, no exceptions, none, nada, nope, no way, your late – you’re out for the week)
  2. Failure to enter your tips will see you get the Average score for the round.
  3. To play you need join before the start of the season
  4. A bonus 2 points will be awarded for a correctly tipped margin in the designated margin game. (This is generally the first game of the round)
  5. Have fun.

Tower Systems serves in excess of 1,700 newsagents around Australia with retail management and home delivery management software.

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Social responsibility

The Age covers up bushfire coverage

age-feb08.JPGPeel back the advertisement which covers half of the front page of The Age newspaper today and you see the words respect and remember – referring to the two year anniversary of the Victorian bushfires.

I hope that the marketing people at The Age are happy with their cover up of editorial coverage of what is still a difficult event for so many Victorians.

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newspaper masthead desecration

Flood donations slow to a trickle

Since the shrill attacks on the flood levy by sections of the media, donations into our Flood Appeal collection tins have slowed to a trickle.  This is unfortunate as the need for these funds has not diminished. Further, the funds are being used for purposes outside those funds allocated and to be allocated by state and federal governments.

While we will take our collection tins down tomorrow, we will continue to support the efforts of the Flood Appeals in other ways – such as engaging with community fund raising activities.  However, even these appear to have slowed.

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Social responsibility

Banking flood appeal money

floodmoney.JPGWe banked our first deposit of flood appeal money on Wednesday, $375.  We should have another $300 or so to bank by next Monday.  Customers are being very generous. As we promised our customers, we have the receipt on display, near the collection container.

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Social responsibility

Advice from Network Services for flood affected newsagents

Network Services has published the following magazine distribution update for flood affected newsagents:

Network Services will continue in our attempt to get stock to you and keep you updated with our progress. At this stage we are very pleased to announce we have been able to successfully source alternate transport options for some parts of the state, with a number of weekly titles being flown into the far north to ensure delivery is made in a timely manner.

Details of our plans for Monday’s delivery are outlined below:

Far North Queensland:
We are in the process of moving some stock to you via air-freight in order to bypass flood waters. As a result we currently expect titles to be on-sale Monday close to normal including the key weekly titles – Woman’s Day & TV Week. Please note this is the plan at this point and is subject to the availability of airfreight slots – as you can appreciate capacity is limited & critical supplies have priority. Grazia & NW we expect to be on-sale Wed as usual.

Country:
This area is still a difficult one for our trucks and drivers. While some key line haul routes are opening (especially to the North) others remain closed. Additionally there are significant localised closures effecting access to & through key communities. We will deliver all products scheduled for on-sale Monday where possible.

Metro:
At this stage you should receive your deliveries on or close to the usual schedule – including Woman’s Day & TV Week.

Again we apologise for supply delays caused by recent events. We understand how important supply is to all businesses at this time, it is for this reason we wish to reinforce that supply has not been preferential. All supplies have been and will continue to be shipped to all businesses (regardless of type, size, sales volume) as soon as safe passage is available, the only factors influencing supply at this stage are the availability of drivers and safe access.

NOTE – We are currently attempting to contact all retailers and agents whose business’ or towns have been inundated by flood waters. This is order to discuss how we can best assist you during this difficult time. If you have not yet been contacted we ask that you call our Flood Assistance Hotline on 1300 131 169 and select Option 1.

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magazine distribution

Helping others raise flood relief funds

qld-floods.pngTower Systems created artwork for its retail customers and any other retailers to use in encouraging their customers to donate to the Queensland Premier’s Flood relief Appeal. This free artwork is available here. Feel free to use the artwork and share it with others. Every dollar helps.

We have been raising funds in our own newsagencies for several days with tremendous success. We have had customers dropping in coins from change while others have tipped in $20 or $30 from lottery ticket winnings. Most heartwarming indeed.

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Social responsibility

Customers responding to flood appeal at the counter

flood-appeal.JPGJust as we found with the Victorian bushfires appeal, we are finding our customers responding positively to the collection of funds for donating to the Queensland Premier’s Flood Appeal.  From small change to lottery syndicate wins of $10 and more, money is getting dropped in.  This is wonderful to see.

We are using a transparent container so that the amount collected can be seen by all.  The container is tethered to the counter to protect against theft.  Our notice advises customers that we will post receipts to show what has been donated.  Customers loved this transparency during the bushfire appeal.

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Social responsibility

ACP Magazines raising funds for flood relief

ok-floods.JPGKudos to ACP magazines for donating ten cents from every copy of their weekly magazines sold over the next week to the Premier’s Flood Relief Appeal. Participating titles include Woman’s Day, Take 5, NW, TV Week, ZOO Weekly, OK!, The Picture, People and Grazia.  Staring with OK! which went on sale yesterday.

The total circulation of these magazines is in excess of 1 million copies each week.

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magazines
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