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Social responsibility

Covid rapid test opportunity

Through the newsXpress retail marketing group business I own I have access to Covid rapid tests. The first shipment sold out. We have access to two more charter flights landing Feb 11 and Feb 16. The tests being imported are TGA approved: Clungene and Alltest. Each retail pack has 5 tests. Each box has 240 retail packs. The wholesale price of $43.90 per retail pack (plus GST) delivered. That is $10,536.00 for a carton of 240 retail test packs delivered. The current retail price ranges between $60.00 and $75.00 for these 5-test packs, putting the 240 units at a retail value of between $14,000 and $18,000.

We have to finalise our next order today, and pay in advance for it on Monday.

If this interests you, please email rapid@towersystems.com.au with your business name and address and the number of boxes (240 retail packs per box) you would require.

We will get back to all who register with advice as to whether we hit the required minimum for the order. If it proceeds, we’d need payment by Monday.

Sorry, there is no opportunity to break the boxes.

The challenges with importing Covid tests are causing logistics costs to surge overseas and locally as there is a scramble for stock. This is a key factor in the wholesale being what it is.

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Social responsibility

Freight delays at Sydney airport impacting RAT supply chain

The Freight and Trade Alliance shared this with their members re challenges at Sydney airport.

IMPORT COLLECTIONS: EXTENDED SYDNEY OPENING TIMES & REQUEST FOR PROMPT COLLECTION

Freight & Trade Alliance (FTA) have received feedback from freight forwarding members that they are experiencing delays at Cargo Terminal Operations (CTOs) which appear to be largely resulting from increased import cargo volumes and staff isolating due Covid-19.

We understand the sudden influx of cargo flights with rapid antigen test kits and other medical equipment is proving to be problematic particularly in MEL and SYD. Numerous chartered cargo flights are arriving with little to no notification. This is resulting in some resourcing challenges, at present, with the processing of import cargo for CTO operations.

We will continue our ongoing engagement with CTOs, Qantas, Dnata and Menzies in these challenging times.

In the interim, Menzies have confirmed this morning (Monday 31 January 2022) that they are facing collection issues, predominantly in Sydney, which is inhibiting the processing of new inbound cargo flights.To help alleviate the situation with the influx of import cargo Menzies will extend opening times in Sydney.

I share it as it’s another piece of information retailers can consider when looking at freight delays, specifically RAT delays.

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Social responsibility

The Are Media price for Rapid Antigen Tests doesn’t make sense

My newsXpress newsagency marketing group negotiated access for its members to this exact same Rapid Antigen test product for newsXpress members for $34.95 with no limit on quantity. The Are Media price of $51.75 does not make sense. They are suggesting magazine level margin with their RRP, a RRP by the way that is $10.00 higher than the RRP for the newsXpress sourced product.

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Social responsibility

Melbourne Toy Fair cancelled

Here is the announcement from this morning:

It is with much regret that the ATA Board and Management inform our members and the industry that the 2022 Toy Hobby Licensing Fair, which was set to take place at the Melbourne Convention and Exhibition Centre, will not go ahead.

The current situation is quite concerning with the spread of COVID through the community and while borders are remaining open, this not only raises concerns around the safety of an event but also its success due to a potential low attendance rate.

Both are vitally important for a successful in-person event.

We understand that this is a disappointing outcome for all and while there was so much positivity prior to Christmas, the current environment proves that things can change quite rapidly and there are no guarantees of improvement in time for the Fair in March.

We are pleased to confirm that the Digital Fair will still take place and with the new dates of Monday 28th March to Friday 1st April. The online fair will provide a platform to promote and source brands and products safely and effectively. While nothing can replace a live event, this will still bring the industry together again in March.

For any questions, please feel free to contact us at toyfair@austoy.com.au.

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Social responsibility

Back to school necklace – a dark side of back to school online searches

I was doing some research this week into online searches in Australia for back to school products, so that I could offer some insights to newsagents who rely on this vital retail season. I was shocked to discover that back to school necklace was searched more than back to school.

I thought why all this interest into back to school themed jewellery. But then I searched back to school necklace for myself.

Back to school necklace references a noose, meaning to some despair they feel about returning to school. I was shocked. There are news stories about this going back several years.

I am shocked at my ignorance about this situation and the risk it poses to so many. I am glad to now know a bout it at least.

Back in the day, back to school was fun, packed with hope and plenty of excitement in shops like newsagencies. Kids and parents were the focus. Now, with many competitors in a crowded space, all the noise is about price. The season feels much less personal today than a few decades ago.

I’m not a psychologist or a qualified counsellor but I do wonder if all of us in the back to school space can benefit from understanding the anxiety some feel at returning to school and offer some form of support and encouragement for all returning to school. I know in my case our in-store engagement will change based on what we now know.

While it may not feel commercial to focus on how people feel and supporting those who may be anxious about returning to school, it could be that doing this is differentiating such that it is valuable.

In a practical sense, I am suggesting a back to school pitch that is fun, encouraging and supportive … happy. Maybe not this year as that season is close to done, but for during the year or ahead of next year.

Our local retail businesses can provide an oasis experience for shoppers, leaning into happiness and optimism. Local small business retail can do this well, many do.

Being aware of the darkness of the back to school season felt by so many provides us an opportunity to offer them a safer space into the future.

There are many resources online offering access to professional advice on anxiety and other mental health challenges relating to school and back to school. I have found Beyond Blue and Headspace particularly helpful for reading and understanding.

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Bagged magazines

One retailer is mixing politics and retail, with flair, on social media

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Social responsibility

Reed gift fair in Sydney postponed

Reed sent out this notice today, announcing the postponement of their Sydney Gift Fair, due to start in a few weeks. This is a blow to retailers and suppliers, but, understandable given the Covid mess, especially in NSW:

An Important Update from Reed Gift Fairs

This week has been pivotal in our planning for the upcoming Reed Gift Fairs Sydney event, scheduled for 19-22 February 2022.

While we ended 2021 optimistic that Reed Gift Fairs Sydney would run safely and successfully next month, it has become clear after consultation with our community that the recent COVID-19 Omicron outbreaks have made it extremely difficult to confidently plan for the upcoming event.

As a result, RX (Reed Exhibitions) have made the necessary decision to postpone Reed Gift Fairs Sydney to the new dates of 9-12 April 2022, co-located with Life Instyle at the ICC Sydney.

Although we currently have permission to operate the event under our detailed covid-safe plan with the venue and NSW government, the resounding feedback from the industry, and our own priority as organisers, is that the health and safety of our exhibitors, attendees, partners and staff will always come first. Our team has worked hard to create what would have been an invaluable return to business events, however with Omicron cases expected to peak in the coming weeks, the large majority have voiced their concern for not only health reasons, but travel disruption and the potential impacts of isolation periods away from their businesses and families.

While this will be disappointing news for all concerned, the new dates in April will provide an additional 7 weeks for conditions to improve, whilst still sitting as close as possible to the traditional buying season, allowing both exhibitors and attendees alike to travel and attend events with more confidence to achieve their business objectives.

We fully understand and appreciate the level of planning that is required to participate in an event like ours and we will do our utmost to help all our customers, partners and attendees to prepare for the new dates. Further information will be shared in the coming weeks but if you have any questions, please do not hesitate to contact our Customer Service Team on 1800 571 960.

Although the impacts of COVID-19 have been with us for longer than anyone may have originally expected, it is imperative that we continue to work together. As we adjust to living with Covid in our community and continue to learn how best to balance the need to return to business, exhibitions will remain an important part of the retail supply chain, as will RX’s commitment to keep our community connected.

We thank our community once again for all of your encouragement and support during this challenging time and we hope to see you in Sydney in April.

Kind regards,

The Reed Gift Fairs Team

This was an expected move given announcements about other trade shows and the impact of Covid on businesses and travel.

What was unexpected is news about AGHA proceeding, as reported at GIFTGUIDE:

BREAKING NEWS: AGHA Sydney Gift Fair to go ahead in February 2022

After two years of ‘no shows’, AGHA has decided to hold its Sydney Gift Fair as planned from 18 to 21 February at Sydney Olympic Park.

AGHA CEO Wayne Castle says there has been high demand from retailers to see new products and meet with new suppliers.

“Continually cancelling business-to-business events would lead to a huge shift and downturn in the way people market their businesses, make sales and communicate with clients and suppliers,” he explains.

“As the leading industry association in the gift and homewares sector it is incumbent on AGHA to help the industry thrive in a new norm.”

Indeed, after much consideration regarding the current Covid situation and respecting the urging by industry leaders and chief medical officers that business must accept living with Covid as the new ‘norm’, the AGHA board made the positive decision to proceed with the AGHA Sydney Gift Fair.

“Unlike last year, there are no current health order restrictions preventing business events from being held in NSW. Also, it is no different than a shopping centre environment where retailers currently operate every day in a safe Covid environment and have learnt to deal with Covid restrictions.

“Covid-safe protocols and procedures will be adopted throughout the fair including increased open spaces, less queuing, wider aisle ways where possible and enhanced social distancing opportunities.”

The news of the Sydney Gift Fair finally returning in 2022 has been received well by most exhibitors and visitors who understand the need to continue to operate and manage their businesses in a safe controlled environment. However, Castle expects the fair to be mainly a Sydney centric affair and adds that some big companies, mainly from interstate, have pulled out.

“Normally, attracting tens of thousands of Australian and international retail buyers demonstrates the ongoing relevance of this important trade exhibition for retailers who are seeking the latest brands and seasonal products entering the market.

“However, for more than two years, industry buyers have been unable to physically see and source new products, meet face-to-face with their suppliers and network with colleagues. For continued growth of the industry and economy it is crucial that businesses continue to operate and grow despite Covid-19.”

Sydney Gift Fair will once again feature the Australian Made pavilion, Artisans Lane, Launch Pad for business start-ups and a New Products showcase together with the usual extensive range of suppliers.

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Social responsibility

Where else in the world does a government owned retail network compete with local family-owned small businesses?

The Australia Post Back to School catalogue has been delivered and, once again, we have government owned retail shops leveraging their protected status to chase business that otherwise could / should go to private enterprise, including local small business retailers like newsagents.

I have no issue with privately owned Licenced Post Offices. My only issue is with the government owned Post Offices. In my view, the government have no place owning businesses that compete with established private enterprises in this way, especially since the private businesses were in this pace first.

Any politician who cares for local small business would try and do something about this issue. But, as we have seen for decades in Australia, they won’t.

I first started writing at this Newsagency Blog about the issue in 2006. back then, I had a government owned Post Office directly opposite my business, in a Melbourne shopping centre. Here is one of my posts from then:

IS SIR HUMPHREY APPLEBY WORKING FOR THE GOVERNMENT?

On September 26 I wrote to, among others, Federal Minister for Small Business, Fran Bailey about Australia Post and the unfair advantage their Government-owned Australia Post stores had and how they were specifically targeting small businesses, specifically newsagencies. In my letter I said, in part:

When farmers talk of the impact of droughts the government steps in with assistance. When auto makers talk of the impact of cheap imports the government steps in and helps. When newsagents talk of the impact of Australia Post the government ignores us.

Australia Post is our drought. For many years now it has been draining newsagencies of revenue.

Yesterday, I received this reply from the Minister. While I appreciate the response, it is meaningless. The letter says, in part:

The Australian Government recognises the importance of newsagencies in our communities and is committed to creating a fair trading environment for all small businesses.

It also makes the claim that Australia Post is permitted to:

…carry on any business or activity that is incidental or relates to the supply of postal services.

This morning I have responded with this letter to the Minister. How can the Government consider Music CDs, Chess sets, Radios, Puzzles and Cookbooks to meet the criteria under the Act? Why will the Government not take steps to have the Australia Post breach of its obligations under the Act investigated?

The Government is conflicted beyond its ownership and regulation of Australia Post. As my letter to the Minister today says:

For decades, newsagents were profitable while they had a monopoly on the distribution of newspapers and magazines. In 1999 the Government facilitated the deregulation of the distribution of newspapers and magazines. As we have lost the benefits of exclusive traffic as a result of this deregulation, Australia Post has increased its range of newsagent type lines and thereby very successfully leveraged its continued exclusivity to more effectively compete with us.

I am not calling for a wind-back of newspaper and magazine deregulation. Rather, I am calling for the Government to get out of the business of competing with independent small business.

I was in a Government owned Post Office yesterday and was confronted with a big display of plush product – soft toys. Where in the Act are provisions permitting Australia Post to enter the soft toy space? Their entry into this category this Christmas season will affect sales in my newsagency.

I am disappointed that the Government will not even for a moment contemplate that they are wrong on this and that the actions of their Corporation are harming a small business channel which is vital to the community.

Yes, Sir Humphrey Appleby is alive and well and writing letters for the Government.

I suspect the only time the federal government will exit owning and running shops through Australia Post is when they can make a chunk of money selling the retail shops to some big business mate.

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Australia Post

What’s it like for local small business newsagents in a community impacted by Covid

Thanks to inaction by government on containing Covid and the opening up of the country and it’s population to the virus, local small business retailers like newsagents are now daily dealing with significant consequences, and we are doing this with minimal government support or understanding.

Staffing is difficult with more virus around. There are newsagencies operating on reduced hours, some have had to close. Some owners are working 100 hours a week as they have no staff available – because of Covid infection, lack of access to childcare or because of fear – and their small regional community relies on the business for plenty of essentials. The staffing challenges are distressing many.

Customer anger is up, way up. The anti-vaxxers have a louder voice than ever, emboldened by recent capital city protests, and they are happy to use it in a shop enforcing mask requirements. Some anti-vaxxers vent in the shop or at the front door while others take to social media, posting bad reviews – and good luck to retailers trying to get those bad reviews taken down.

Rapid Antigen Test access is a big problem. Many newsagents were selling Rapid Antigen Tests tests last year. Backorders have been cancelled because of late government action on access to the tests. This is adding to stress for those running newsagencies and local communities relying on them for test supply.

Overheads are up. There are masks to buy as well as more cleaning supplies and other requirements necessary in these new settings.

Sales are all over the place. In plenty of newsagencies, sales are down because people are self regulating in the absence of government regulations, and isolating – but this time with more fear than when lockdowns were imposed. Whereas in 2020 and 2021 almost every newsagency in Australia saw double-digit growth, the let it rip approach pushed by NSW and now accepted nationally (except for WA) has resulted in more fear in the community and this fear keeps people home and not willing to spend. This happening in an economy with no business support settings is a new set of challenges.

Government support has disappeared. While dealing with Covid costs local small business retailers like newsagents much more than over the last two years, support from government is non-existent. So much for their care and concern for small business.

Whereas in 2020 and much of 2021 there was federal and state government clarity on rules and settings. Today, it’s a moving feast. The rule changes are hard to keep up with. Some don’t make sense. Some place us at more risk, letting people into the community when they may still be infectious. This adds to stress in the community and being local community hub businesses, newsagents feel it, every day.

2022 has not started off as anyone expected.

While the challenges are considerable, newsagents are doing their best, opening as much as they are able, providing as safe a retail setting as they can and offering their community support.

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Social responsibility

GNS update on Rapid Antigen Test access for newsagents

GNS issued a statement this morning regarding access to Rapid Antigen Tests:

Dear Customers,

As you would be aware from press reporting, consumer demand for rapid antigen tests (RATs) has been unprecedented in recent days.  GNS sold out of these items (GNS codes 84779 and 84780) on 29 December and has been taking back-orders since, anticipating further supply being made available by our local supply partner based in Melbourne.

We were advised yesterday by our supplier that our expected delivery of RATs (due 5 January) was no longer to be supplied to us, as a result of Government action to seize RAT supply at point of import for public health purposes. Our supplier is currently waiting on an allocation of stock to be supplied from a new shipment due this week, although GNS has not been provided with a firm ETA at present.

In view of the uncertainty of supply, we have stopped taking orders for these products until we are confident we can fulfil existing demand. Please note, an allocation process will be in place to ensure a fair distribution for all back-order customers of that stock we are able to secure.

Future supply, and the terms on which supply may be made available, will be communicated to those customers with back-orders in due course.  If you wish to cancel your existing back-order(s) please contact Customer Service who will be able to assist.

Thank you for your understanding in what has been an incredibly challenging supply market, and apologies for any inconvenience caused.

Kind regards,

Adam Wedge
Head of Merchandise

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Social responsibility

Major shopping centres less busy this Christmas?

Retailers in shopping centres are telling me that traffic this week before Christmas is down in the last two years. Click and collect sales are good as has been online for the last couple of months.

They put it down to people avoiding shopping places where there are likely to be large groups of people.

Not that they would release it but it would be good to get shopper traffic data from all shopping malls in Australia for the last two weeks for the last three years. If what I am hearing holds up, we’d see some centres down considerably, others steady and some even up.

A couple of NSW retailers I have spoken with say customers have contacted them to cancel LayBy collection saying they are too concerned about the virus. In each case they said in-store traffic is down 20% on 2019, the opposite of what they had seen through October and November, pre Omicron.

In my own situation, I have two businesses in major centres. One us up, way up, while the other is flat over the counter in-store but click and collect has surged. That second store has the centre’s Santa photo display out the front and it’s not booked out, not at all. That’s the best indicator of the challenge I am writing about.

On the high street we’re seeing a number Christmas, which is wonderful.

While I get push for personal responsibility, that is harder to plan for than government mandates controls, which are easier to plan for.

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Social responsibility

When governments leave it up to people to be responsible

When the NSW government early last week shutdown check in at retail and did not follow the health advice on masks and other measures in retail, newsXpress shared the following with its members – in response to some requests for guidance:

Opinion / advice: Omicron, NSW and newsXpress businesses.

In NSW, QR codes are no longer mandatory in newsagencies, or in any retail. Deep cleans are no longer mandated in businesses where contact has occurred.

From the UK and Europe we can see that Omicron is transmitting quickly, and loading hospitals as a result. In the last few days we have seen this in NSW, too.

Our advice to newsXpress members in NSW is:

  1. Continue with QR code check in.
  2. Continue with staff wearing face masks. The NSW Chief Health Officer was clear with her advice on masks earlier this week, contradicting the advice from the health Minister. Dr Chant made it clear – wear masks, they work.
  3. Keep acrylic panels at the counter up.
  4. Continue to clean regularly.
  5. Continue to encourage staff to wash their hands.
  6. Continue to make masks and hand sanitiser freely available in the shop.
  7. Encourage all staff to get boosted as soon as they can. The government has cut the timing from 6 to 5 months. You can ask for it sooner and doctors will do this (I did that myself weeks ago).
  8. Message on social media about keeping the community safe, especially the vulnerable who cannot make decisions for themselves or who are health compromised.

I appreciate there is a strong desire to get back to life the way it was. That will not happen for years. Omicron was always coming as is the next significant variant and the one after that.

The more infections the stronger the breeding ground for virus variants.

From a business perspective you want to ensure that you can remain open.

What you do in your business is 100% up to you. We have shared this today in response to a couple of NSW members who asked us.

newsXpress also shared some collateral for positive reinforcement messaging on masks, including …

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Social responsibility

The Herald Sun today shows, again, it’s part of the problem

It’s embarrassing having the Herald Sun on display today. I think the front page ‘story’ about masks is lobbying, not journalism. The ‘story’ references NSW where the politicians decided masks were no longer required while, at the same time, their Chief Health Officer said masks should be worn.

Politicians, and media proprietor lobbyists can play their games, the science remains that transmission is greatly reduced where masks are worn.

Of course, news outlets have trotted out the usual ‘representatives’ of business complaining about masks. Those same media outlets should give more time to the scientific and medical experts.

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Social responsibility

Chronic staff shortage impacting retail and hospitality in Australia

Gee it’s hard to find reasonable candidates for retail. We have heard plenty about the challenges in hospitality – one excellent restaurant in Melbourne has halved their hours because of a lack of wait staff – but the extent of the retail staff shortage is recent.

I am advertising for people for three of my shops. In each situation we are offering $2 above the award hourly rate, and other benefits.

Seek has been unsuccessful. The same is true with social media. The platform working best right now is Indeed. But you have to be fast. For example, this week already, good and ideally experienced people we have contacted within half a day of applying have taken jobs elsewhere. Once we realised this we modified our approach, to get faster and on-point.

Thankfully, here we are on Thursday with three new hires, each having completed paid half-day trial shifts and ready for immediate start.

If the situation did not improve we were considering a longevity bonus at 3 or 6 months or something else to separate us from other businesses fishing in the same, almost empty, pond. This is especially true for good people.

The staff shortage in Australia is real. The impact os knocking through the economy.

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Social responsibility

Australian made is a factor in card buying decisions

Customers are loving the excellent range of locally made single and boxed Christmas cards. We know because of the comments.

I especially like the smart placement of Australian made by suppliers on their packaging. Here’s one example from a pack a boxed Christmas cards:

Here’s an example of the collateral from Henderson calling Australian made out with their Christmas singles:

I think the locally made story is one of several factors at the core of excellent Christmas card sales growth this year.

The products we put into our businesses reflect choices we make. If we pitch shop local, it starts with us.

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Social responsibility

AFR: Afterpay fees may be passed on to shoppers

The Australian Financial Review has this story:

Afterpay fees may be passed on to shoppers

Customers of Afterpay and Zip may be forced to pay buy now, pay later fees now borne by shopkeepers under plans for more intensive regulation of the fast-growing sector being considered by Treasurer Josh Frydenberg and the Reserve Bank of Australia.

Afterpay and Zip prevent merchants passing on the cost of buy now, pay later credit, which represents about 4 per cent of the price of purchased goods. Major BNPL providers processed $11.4 billion worth of sales in the year ended June 30, implying about $450 million of merchant fees.

The Treasurer said changes to modernise the regulation of the payment system would be settled by mid-2022 to accommodate new and emerging payment systems.

“This will include considering the appropriate treatment of services like buy now, pay later and digital wallets, including any new rules around fees and surcharging,” Mr Frydenberg told The Australian Financial Review on Wednesday.

The story does not feel right to me. By that I mean it feels like it is part of a political game and not an active consideration. I doubt the government would help small business while at the same time undertaking a move that the big business BNPL operators would not like.

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Social responsibility

Seven news: How the rise of ‘tap and go’ payments is hurting small businesses

Great to see mainstream media shine a light on this story about the soft of tap and go:

How the rise of ‘tap and go’ payments is hurting small businesses

Published: 08/12/2021Updated: Wednesday, 8 December 2021 3:04 PM AEDT

The rise of “tap and go” has seen grocery and fuel sellers slugged with higher transaction costs they can no longer absorb, a small business summit has been told.
Consumers don’t know that buying a coffee with a mobile phone might be making it harder for their favourite cafe or servo to remain in business because of steep transaction costs.

“Transaction costs are accelerating more than any other,” Mark McKenzie, chief executive of the Australasian Convenience and Petroleum Marketers Association said on Wednesday.

Merchants’ fee costs have become an essential service, on a par with electricity bills in their impact on a business, as leaps in technology run ahead of legacy banking systems, he told the Council of Small Business Organisations Australia (COSBOA) payments summit.

Ben Kearney, head of the Australian Lottery and Newsagents Association, said there had been a massive increase in contactless payments, particularly during the pandemic.
“It has become an enormous issue for our members because of cost,” he said. He said a $10 lottery ticket brings a $1 commission but then a 10 cent transaction fee would erase 10 per cent of that commission.

Payments expert Robbie MacDiarmid said $67 million per month in excessive fees was being paid by small businesses due to routing of payments.

COSBOA members want every transaction to be processed on a “least cost route”, including from digital wallets and phones, despite legacy issues for banks.

However, head of payments policy at the Reserve Bank of Australia Tony Richards said small merchants have low transaction costs by international standards. “Payment costs in Australia are much lower than in the United States,” he said. Dr Richards was not aware of any market where least cost routing was compulsory but he acknowledged treatment of payments made with digital wallets needed work.

He said least cost routing in mobile payments was not common and it would involve retrofitting payment systems and overriding consumer choice. ‘In some cases they’re just trying desperately to keep their head above water’ But Mr McKenzie says merchants are the customer of the service yet the supplier is making the decision about how they get that service, and that is innately wrong.

Meanwhile, COSBOA chief executive Alexi Boyd said business owners often didn’t know they were being slugged the maximum amount.

Nor would a consumer know that paying through a digital wallet like Apple Pay or Google Pay or doing a “tap and go” payment with their phone meant the transaction attracts fees were up to six times greater, she said.

I urge you to read the full story, and to share it on social media.

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EFTPOS fees

Is the influence of influencers waning?

Social media is clogged with influencers peddling products and services they are being paid to peddle. The extent of it is enough to push you away from social media.

Influencers started our when they discovered and businesses discovered that people following other regular people added on what they talked about.

But that was back when the opinions were genuine, based on personal experience, when their kind words about a product or service were authentic.

Today, it’s all about the money – the money the influencer is paid, their agent is paid and the agency is paid to put a campaign together. When they talk about a product they ‘love’ it’s transactional for them … pay is $5,000 and we will deliver you a 30 second video sprucing your product and talking about how we ‘use’ it or ‘love’ it.

Maybe I am outside the demographic but I don’t trust influencers nor do I act on the endorsement of influencers.

It surprises me when I see companies, usually big companies, paying influencers to spruik for them – because it’s a crowded marketplace, and because, for me at least, of the trust thing, or lack thereof.

I’ve been approached by influencers. I’ve had several parents offer up their kids to play with a toy and talk it up in a video for $500. I’ve had a self-labelled shop local influencer offer to walk through my shop and share the joy for $1,000 for a 3 minute video.

They are nothing compared to the bigger campaign influencer engagements from the millions paid to a Kardashian to the thousands paid to local Aussie influencers.

I think the gloss has worn off the influencer temple, that people see them for what they are and that their spruiking is ignored as much as other advertising, because that’s what it is, advertising. This has happened in part because of the blurring of the lines between what is clearly paid advertising and ‘heartfelt’ endorsement.

But, maybe, that’s wishful thinking on my part.

I do think in this noisy influencer look at me world, I think people crave truth and authenticity. This is why a real review from a customers about your business or products matters much.

Personally, when I see an influencer talking up a product, my first question is how much they sold themselves to pitch. I wonder if I am alone in that. I suspect there are plenty who see a face they recognise pitching a product and understand the transactional nature of this and realise that the endorsement has come about because they have been paid to make it.

Influencing, of course, good back many years. In the early 1990s I was approached by a newsagent who held a position on a board. They asked for an extraordinary deal on the software in return for them using their position to tell others. I heard about it from the salesperson working for my company at the time. The newsagent wanted the deal so much that they repeated it – the quid pro quo – in detail, not wondering why we set a second meeting. The recording of it was damning. There were consequences. We refused the opportunity by the way.

Paying someone to say good things has to be understood fort what it is, even in today’s influencer world.

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marketing

Some police could be better informed re Covid requirements in retail

We received our third visit from the police last week to check our Covid plan and check on our processes. They were not happy that we were not checking the vaccine status of customers. Eventually, they agreed that essential retailers were not required to do this check.

It’s frustrating that those policing the regulations are not as up to date with the regulations as they should be. The visit wasted our time and created a brief ‘scene’ in the shop.

We take our Covid responsibilities seriously and have done since the pandemic began.

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Social responsibility

Are newsagents facing challenges accessing credits from IPS as that Australian Community Media business winds down?

Integrated Publication Solutions (IPS), is a distribution company owned by Australian Community Media (ACM). Several months ago IPS announced they are closing down. This, naturally, has resulted in newsagents wondering about credits owed them by IPS.

The challenge, I am told, is getting answers from IPS, as has been noted in comments here.

It is appalling that newsagents have to deal with decades-old and seriously under-resourced accounts offices in magazine distribution businesses – not only at IPS, but elsewhere. It costs us money, which hurts given the low margin made from magazines.

Of more serious concern is the mental health impact on some newsagents of poor accounting processes in and poor account credit related communication from magazine distribution businesses.

Australian Community Media pitches itself as locally engaged and supportive. It would be a bad look for the business if local small business newsagents are not treated with fairness and haste in the settling up of refunds owing on the closure of ACM’s IPS magazine distribution business.

The closure of IPS is challenging enough with poor practices at Wrapaway.

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magazine distribution

Will The Saturday Paper, best Bets and Winning Post suffer from poor data management processes at Wrapaway?

Publishers of The Saturday Paper, Winning Post, Best Bets and a bunch of other titles should listen to concerns raised by newsagents about the out of date data handling processes of Wrapaway, the new distributor of these titles following the closure of the IPS business.

Wrapaway does not provide electronic invoices. Indeed, they do not incline until the end of the month.

For close to 20 years newsagents have been receiving magazine inventory with electronic invoices. Electronic invoices save time, guide accuracy and facilitate stock inwards reconciliation.

The Wrapaway manual processes cost newsagents time, accuracy and the ability to reasonably manage incoming stock.

One newsagent told me last week that the move to Wrapaway has added at least 30 minutes additional work each week, morning work, which has to be covered in the roster. The actual cost is close to $15.00. That hurts when dealing with meagre margin products such as newspapers and magazines.

Another newsagent told me they no longer sell the titles as there’s not enough money to be made to warrant the extra work.

I raised the issue with the folks at The Saturday Paper in September when the move was first made public. Their circulation manager was disinterested in the issues raised. I outlined what newsagents expected from a magazine distributor: electronic invoices at the time product arrives, no physical returns etc. Yet, here we are approaching December, and newsagents are worse off.

I like The Saturday Paper, but I don’t like the extra cost I have not to carry it in my shop. This is something Schwartz Media and the other publishers now engaged with Wrapaway could have resolved – if they cares about local small b business newsagents.

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magazine distribution