Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Are magazine distributors cutting small newsagency accounts?

Mark Fletcher
February 10th, 2014 · 7 Comments

Several moves in recent weeks suggest that magazine distributors Gordon & Gotch and Network services are reviewing small accounts with a view to cutting accounts that to not meet minimum sales criteria. While they have had thresholds for new accounts and in the past have review performance, I anticipate the review this year will be felt more widely.

Call it a conspiracy theory but I wonder if any such review and plan to reduce the number of smaller accounts related to the withdrawal of support and requirement for the previously mandated five day training course for new newsagents.

While there is active discussion among newsagents and their suppliers about the closure of newsagency businesses and what this means for the future of the channel, there has been little discussion about the support for the channel by core suppliers such as magazine distributors.

Magazine distributors continue to treat newsagents unfairly. They supply us using rules and processes established in the days of regulation yet our competitors are treated differently, in a de-regulated way. This creates an unfair playing field that newsagents have failed to have addressed.

While the ANF invests in a struggling bill payment platform, its member newsagents are facing more challenges from an old magazine distribution model that leaves their businesses uncompetitive in this slim-margin product category. And while on the ANF – any distribution account review should see newsagents treated the same as another direct drop account.

I’d encourage newsagents to share here if their account is being reviewed or has been cut.

12 likes

Category: Hubbed · magazine distribution · magazines · Newsagency management · Newsagent representation

7 responses so far ↓

  • 1 Bill // Feb 10, 2014 at 5:41 PM

    What is there cut off point, and will the 7/11 and B P Shell be cut or is only the small people going to be cut ,our local 7/11 get 5 new idea and 8 thats life will they be stopped will post if they do not If they cut some and not others ? Mr Scott who blew up the sub agents some years a go has what to say now shit in there nest had it made agents doing the work

    0 likes

  • 2 Mark Fletcher // Feb 10, 2014 at 6:25 PM

    This is the thing Bill. I understand there are KPIs to be met but it feels like they change when I hear about this business or that. What newsagents need is consistent application of consistent rules that apply to all magazine retailers.

    5 likes

  • 3 Gary // Feb 11, 2014 at 8:17 AM

    I note all the local service stations in my area are grossly oversupplied with monthly titles sometimes more than my allocation and I service 30 subagents + large retail store.

    knowing the demographic in my area, I can bet they don’t sell more than me.

    1 likes

  • 4 Jim // Feb 11, 2014 at 8:58 AM

    What newsagents need is consistent application of consistent rules that apply to all magazine retailers.

    And isn’t this one of the prime roles the ANF should have instead of frigging around with dead-duck bill payment systems and getting into bed with every Tom, Dick and Harry who presents a lightweight business case and a free lunch with a hint of something in it for the ANF individual who champions their cause.

    The ANF’s constant failure (or vested-interest driven refusal) to take on the major challenges facing this industry only serve to reinforce the widely-held view that this increasingly irrelevant organisation is staffed and directed by clowns.

    Anyone still paying dues to this mob is incurring yet another unnecessary overhead

    22 likes

  • 5 Mark Fletcher // Feb 11, 2014 at 6:23 PM

    Lots of likes for your comment Jim!

    2 likes

  • 6 Jim // Feb 12, 2014 at 1:30 PM

    Ironically, I had a letter from Bauer yesterday welcoming me back to Connections. Nothing has changed since they gave us the flick a while ago so I’m buggered if I know why they bothered.

    Odd!

    1 likes

  • 7 MAX // Feb 12, 2014 at 2:53 PM

    Jim,
    Same here !!

    1 likes

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