The working poor
News Ltd’s Daily Telegraph has a cover price of $1.00. Over the many years the cover price has been $1.00, wages, rent and business costs for newsagents have risen at least 40%. The fixed low cover price means newsagents are far worse off today.
Newspaper publishers in their annual reports crow about advertising revenue growth. I’d told it accounts for in excess of 85% of revenue for a title and that he cover price is about recovering the cost of retail and home delivery distribution.
Newsagents are becoming the working poor with these low and unchanging cover prices. Our cost of doing business rises each year yet the return from a crucial core product such as newspapers remains flat – falling in real terms.
Newsagents are required to provide prime real estate, invest in display infrastructure, provide access to promotional space and carry the cost of rising wages, rents and overheads for a flat return. And to remain contented while the publishers push their product to more and more non newsagent outlets.
Publishers complain that newsagents are lazy, not compliant with their requirements and lack entrepreneurial drive. The compensation from newspapers does not motivate newsagents. Indeed, it de motivates.
If the publishers treated newsagents as business people and respected and rewarded entrepreneurial drive in a commercial way then more newsagents would demonstrate their business skills. When here is no such reward it is understandable that many newsagents channel their efforts elsewhere.
I urge the publishers to rediscover newsagents and reward entrepreneurial effort commercially.
The current behaviour toward newsagents is not socially responsible.