News Corp. today announced the results of its remuneration review for distribution newsagents.
- An increase in the home delivery fee newsagents are permitted to charge home delivery
customers they bill for each News publication- Metro agents: increasing from $0.205 per copy to $0.2081 per copy incl GST
- Country agents: increasing from $0.2563 per copy to $0.2601 per copy incl GST
- An increase in the amount they can charge home delivery customers as a
postage/administration fee- Increasing from $2.00 to $2.30 incl GST
- This can only be charged on each customer invoice if the customer elects to receive their monthly invoice as a hardcopy rather than electronic
It is appalling that a supplier can dictate the fees a small business can charge for such a labour intensive service.
Newsagents, the service providers, ought to be able to charge what they like. But, the system is the system and those in the system entered it knowing the terms.
The fee increase is disrespectful and socially irresponsible.
Victorian distribution agents looking to save money ought to consider quitting VANA, the local newsagent association as VANA is clearly not able to help them on the single most important matter, fair and equitable remuneration. Further, it has never been able to help them. Save the fees and reinvest in your business and you will be better off.
2c per week delivery fee increase???
They appear to be trying to destroy the home delivery network with a strategy that will drive delivery agents out of business.
Good timing…just watched Pulitzer v Hearst on Netflix. Paper Boys went on strike in NYC after the war because the Newspaper Barons would not increase the commissions paid on daily newspapers. That was 100 years ago….nothing has changed! While independent businesses service multi national companies at “less than true cost” then the channel keeps getting stock delivered. If these independent businesses sought the remuneration that Australia’s National retailers receive the Publishers would not deliver goods as they would state that the newsagency channel is not up to the same National standard. The ONLY reason circulation remains at today’s levels is that a whole bunch of people do it at their cost….leaving a profit for the Publishers. Who’s the fools?
We pulled the pin on home deliveries over a year ago but when we did deliver we charged what ever we wanted to and never had a problem with it . That was how we brought the business and that’s how we continued running it . The other agents in town do the same .
On the basis of VANAs previous submissions, this remuneration is clearly below the cost of providing the service in accordance with the contracted service standards.
In other words the publishers are knowingly and intentionally paying below what they know is the cost.
Id suggest if thats not illegal then its certainly negligent.
The only time Im aware of where the publishers asked for tendered rates was in SE Qld as part of the T2020 project. The outcome was that the 5yr national program known as T2020 was shut down immediately. What does that tell you.
It is my belief that there is nothing, zero, nil benefit to newsagents including delivery only agents, in home delivering newspapers.
What would happen if agents nationally said, no home delivery starting tomorrow until this gets fixed. I mean it now costs a dollar to deliver a standard size letter in the middle of the day for goodness sake.
This screams Class Action to me but that would require the associations to grow some Kahunas and for the slaves to rise up against their masters.
Wishfull thinking me thinks.
Famous words from the ‘Famous’ Robert Rigby in relation to the T2020 launch on the Northside of Brisbane – “T2020 will go ahead, no matter the cost”.
The same ‘Famous’ Robert Rigby that told me to produce 6 months evidence of unacceptable late deliveries. I produced 6 months of unacceptable delivery times via texts from News Ltd. I was told that the first 5 months of unacceptable late deliveries wasn’t evidence due to maintenance being carried out at Murrarie! Over 28 years Robert has been employed by News Ltd and still doesn’t understand customer service or customer expectations – no more dealings with Rigby.
I added this last par to the post:
Victorian distribution agents looking to save money ought to consider quitting VANA, the local newsagent association as VANA is clearly not able to help them on the single most important matter, fair and equitable remuneration. Further, it has never been able to help them. Save the fees and reinvest in your business and you will be better off.
The two best things you could do for your business are contained in some of the answers above whther people want to recognice them or not.
Do not do home delivery and start revenue planning (lol..who am I kidding that the current remuneration for papers is revenue ? ) for much less paper revnue in the not too far distant future.
Don’t bother joining an association, you’re much better off putting the money into other areas of your business.
here is what I wrote almost nine years ago, six months after I sold off my home delivery run and said I would not take on another newsagency with home deliveries: http://www.newsagencyblog.com.au/2007/03/22/getting_out_of/
Just read what you wrote 9 years ago. The same may apply to over the counter paper sales sooner rather than later.