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Why did News Corp. cut newspaper supply to small business newsagents?

Why did News Corp. allocations experts cut the supply of newspapers on the launch day of the Dr Seuss national promotion being run by the company to increase the sale of newspapers?

The cynic in me wonders if this is to do with shifting traffic from newsagents to supermarkets.

I heard from several newsagents yesterday about cuts to their supply. Some were cut to a lower supply than their average net sales over recent weeks. There is no evidence in sales data for the cost, hence the cynical wonder.

The Dr Seuss promotion is excellent: timely and popular. Right now is when supply ought to be boosted rather than cut – especially in newsagencies where engagement is far more professional and whole of business.

Footnote: it is usually after I publish a post like this that I get a call or an email along the lines of – I don’t read your blog but someone told me to look at this blah blah blah. The thing is, I know publishers read the blog. Who cares? What matters is that what I have written has happened. It is real. No, I will not tell you the names of the newsagents. Go to your ‘smart’ allocations people and ask for a list of all newsagents for whom they cut supply yesterday and this week, ask them why.

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  1. Steve Sharman

    After last Sunday’s debacle, Monday I spent quite a longtime adjusting my supply on the News website – I was amazed this morning to see my supply less than last Sunday. Nothing really surprises me with News TBO, but their inability to support a great promotion like the Dr Seuss books with a decent supply of papers is pathetic..

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  2. Peter B

    I see Coles got a big cardboard display to put their Dr Seuss books on. They would have got the extra papers too that newsagents didn’t.

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  3. Kerrilyn

    I am guessing all those newsagents out there who religiously got on line and did the right thing last week and increased their supply have spent their morning as we have dealing with really annoyed customers who have missed out on their paper this morning as the “”magic wand”” sliced our supplies back to a level below our regular non promotion level!! We too got online last week, not once but three times to increase our supply. It was accepted but then changed. Finally by Wednesday we got what we asked for. All checked this week was set, we blissfully thought all good they have it in hand. Not so this morning we are back to those lower then pre promotion levels. The inner cynic can rise to the forefront Mark – our two direct supply subagents have not had their supplies cut at all! Just us the little old newsagent who has been peddling and promoting their papers for decades. In fact one subagent – who is on a PUMA contract is getting 15 papers per day – my invoice this morning shows that subagent has not sold anymore then 3 papers on any day since they began on the contract about 6 weeks ago! That was their highest day! 3 papers!!! But yet they still get 15 a day! Our other subagent has not been cut either, not a single paper. they are on an IGA contract. Just to top off our day – our regular die hard regulars who couldn’t give a toss about a Dr Suess book are now missing out because we have to supply the papers to those with the books – mind you not enough supplied to even do that! We’re regional Central Qld – we won’t get extra papers today from anywhere – hell we saw a newscorp rep twice last year and that was the first time in over 8 years and only because they wanted to set the IGA account up! Just to top it off – a customer has already said to me this morning – “oh don’t worry I’ll just get my daughter to go to Woolies” . So Newscorp, if this is what you’re aiming for looks like you’ve achieved it. Now I’ll go and start adjusting my supplies on line AGAIN AND AGAIN and probably AGAIN and we’ll see what/when/if we actually get any change. My inner cynic doesn’t think so.

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