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Publisher anger at Australia Post price hike

Publishers are rallying to vent anger at the price hike announced by the Government owned Australia Post for postage of newspapers and magazines.  Meadibiznet has more on this including a letter sent from D&D mailing Services on this matter.

In addition to lobbying Australia Post to reverse their decision, publishers could engage with newsagents on an alternative magazine distribution model.  I know that from a software perspective, newsagents could provide an infrastructure solution which results in the subscriber accessing their magazine in better condition than one might find from a letterbox.

Newsagents can compete with Australia Post on this. Based on work already done, we could have a trial running quickly.

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  1. Brett

    Count me in for a trial.

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  2. sa_paperboy

    We where in the NSDP it wasn’t without its problems, primariliy we would want magazines to be non-addressed (putting them in run order was a pain)

    Still it shows the strength of size and unity. If properly represented we should be able to dictate ‘price rises’ rather than take whatever they give us.

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  3. Luke

    Didn’t we already try this?
    Did the publishers tell us to go jump a few years ago because they said that Aust post could and would do it cheaper?
    Once bitten twice shy, why should we offer our distribution business to people who were quick to shaft us in the past. If publishers want subcription customers so bad then let them get out of bed at 3am and deliver, fat chance.

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  4. Dean

    We already deliver Fairfax magazine subscriptions, as well as a few customers who get magazines through us. To deliver subsciptions would not take a lot of extra effort, but would give us extra income.

    I am all for it.

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  5. Brett

    I think the thread is that we do not deliver them but rather have them under the counter for the customer. Thus reduced delivery footprint, publication remains in good nick and noone is bumbling around at 3 AM.

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  6. clem

    Better condition hey. We used to get magazines delivered with the newspapers years ago. Rolled up and on your driveway in the weather.

    Not sure that any delivery like that is better, but will the customer really prefer to come into the shop and wait in line, and lets be honest, there are lines in newsagencies too.

    I think that the agitating that happens with any price rise is just part of the game, but if you think you are able to compete, get together, form a cohesive agreeable group (you might call it the newagents association!) and present your case. That is what your organisation needs to do on a national basis. Not get kickbacks from new billpay companies, or bid to get involved in being a lotto supplier, just represent newagencies as a whole group.

    We have seen enough evidence here that no such cohesive group of newsagencies exists, so what basis do you use to bid for this business that was yours previously?

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  7. mary

    People buy subscriptions to have it delivered not to pick it up from the shop.
    If they want to get it put away then they would.

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  8. Mark

    Clem, What I have written about was never owned, controller or serviced by newsagents.

    There are several cohesive groups of newsagents: marketing groups and users of software. They are more and more acting together for suppliers, customers and their businesses.

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  9. D R

    They will want it done for nothing just like the newspaper houses .Hope it makes it to costly for them,i want people in my store .When we have orders for partworks we will take a subscipion for the first 10 if people want the goodies .then we get the next 100 or so , we also order binders .WHY WOULD HELP THEM TO STUFF YOUR BUSSINESS.

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  10. MPR

    OK, so let’s look at a number of the issues that confront us. 1) There is limited space and dominant providers. 2) There is demand for titles that many of us don’t have the room to carry. 3) There is downward pressure on the print industry in general 4) There is an increase in demand for the immediacy of online.
    What if newagents had the exclusive ability to offer hubs that allowed consumers to come in and subscribe to the title they wanted, irrespective of whether it was actually available in the store, and ONLY by subscribing or registering for it from the newagency hub, could they have a digital version of it delivered to their nominated email address – based on the cost of the subscription being clipped by the newagency (unique ISP addresses or some other way of identifying where ther esub came from) OR opt to print it on demand, right in the store at a cost.
    Surely there ARE ways to develop solutions that will sustain the print presence in store for those that want to come and buy off the shelf AND still offer a viable channel for niche or independent publications AND work with the digital industry to widen the consumer market.
    I might be delusional but I would be so surprised if there wasn’t some kind of print-on-demand solution that could work in combination with existing sales systems and reporting systems.

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  11. SHAUN s

    I am with D R why on earth would we want to help deliver the magazines for these publishers ,we have been complaining about our delivery fees for ever in a day and now we want to take on magazines ,makes no sence to me

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  12. Brad

    It would be an interesting exercise, however, would lines be blured between distribution and retail agents? I don’t believe that my local distribution agents would be too happy about me delivering in their area. I agree that subscriptin purchases are people who want it at home. Some of these people have PO Boxes so they would still go the Aust Post. More investigation would be needed before a trail could even be flagged.

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  13. Mark

    In writing about this yesterday and introducing the topic, distribution was not part of my plan. The last mile, as they call it, is too expensive – history has proven that.

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  14. Luke

    Newsagents will be used and abused while the publishers do not have a better option, as soon as there is another option we will be sold out yet again. We have talked about publishers disrespect for newsagents in regards to subscription customers on this blog and for me this has not changed. The only thing that has changed is that the publishers have been burned by Aust Post, they have robbed us of sales over the years by offering cheap subscriptions but now they cannot get these mags out without it costing them, welcome to distribution guys hope you enjoy the cash drain.
    Newsagents have been living with this drain since deregulation, let coles or woolies deliver your subscriptions, you thought they were a better option than newsagents in the 90’s when you tore the profits out of our businesses.
    Yes I am still bitter that my goodwill was destroyed by deregulation of the magazine industry and that I have had to put up with mag companies screwing us for years while reducing our profits.
    But the worm will turn, and I am smiling.

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  15. clem

    Sorry Mark, I am absolutely baffled then as to where you were taking this subject? Were you offering an alternative to the expensive (supposedly) option of delivery by Post? What were you actually discussing then? I got your topic at the start as Post are getting to dear, the publishers are complaining, and we can offer an alternative solution. Did I miss the point completely?

    Or was this just another attack on Post?

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  16. Mark

    Clem, You missed the point. Here is it:

    Australia Post put their prices up.

    Publishers are upset.

    Newsagents have an opportunity to offer an alternative.

    I do not see the alternative a delivering magazines to people’s homes.

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  17. Luke

    Isn’t it the whole point of subscription to get the mag delivered to your home or business? Is’nt this what the the publishers want but at a cheaper cost or have I missed something?

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  18. Mark

    Luke, you are right. However, the cost basis has risen considerably more than the reveneu. Hence my interest in a new model.

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  19. Brad

    Sorry guys but what alternative model? The customer, if they wanted a mag as a regular thing would already have it as a put-away. Some agency I know are very strong in this area.
    Yes I can see that if it was the only option for a subscription the it may have legs. But the big green wall still is the at home delivery this hurdel may sink the idea.

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  20. sa_paperboy

    If they remove the labeling from the magazines to remove unecessary sorting, and provided a workable on/off system then home delivery is fine for a metropolitan distribution agent.

    And as much as I may want to cry about how they ripped it off us in the past and the hurt feelings I would rather look at new opportunities. they tried an alternative and now they have seen the results. Its time to bring it back home.

    Of course any plan would need unilateral national support, I doubt they want different systems here and there. So we will be our own worst enemies again.

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  21. Y&G

    It’s a timely reminder, however of just how much publishers/distributors are in it for themselves (naturally), but in quite a sneaky way.
    Topping AWWs this morning, I was amazed when I noticed that half of our stock would have been special Woollies editions. How I didn’t notice this before is beyond me, and I”m not too happy about it.
    Granted, the promo stripe was narrow, but it should have been more noticeable that some had it and others didn’t nonetheless.
    Lo and behold, there were four extra recipe cards in some, but not others. The “only at Woolworths” is in small print under the promo strip.
    So for the last month, I’ve had the AWW promoting Woollies right under my nose!

    I’ll be looking out for more of these slip-ups in future. Just spewing I didn’t find this one sooner.

    In other words, same $hit, different bucket.

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  22. Jim

    I was obout to give the W/W 6 full face pockets at the front not now ,thats life does look good

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  23. D R

    45% off. $33 save $26.70.Cardmakeing. Offer number 5 50% off + FREE Quilted throw RRP $100.00
    Just a sample if you call the free number .What the hell are we agents doing when we put up with this placed in side those packs of craft mags .That is why we are treated like crap.We are white anting our own business

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