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

What do you think of the Tatts incentive to try and drive engagement of the digital screens?

Tatts reps last week emailed retailers with this incentive to try and drive engagement of the mandatory digital signage screens. They are giving away 30 $1,000 incentive packages. This makes me wonder about the margin being made by the digital screen companies and by Tatts.

Tatts has blessed two suppliers of the screens. If I was a Tatts agent I would want Tatts to disclose any commercial terms with the two companies, or to declare in writing and under signature that no such commercial terms of benefit to Tatts exist. Further, I would want the screen specs so I can determine for myself if the price being offered is the best available for such a volume deal.

There is plenty about this that is concerning to newsagents based on the calls and emails I have received.

Here is what Tatts sent newsagents last week:

Screen Shot 2016-04-24 at 12.15.27 pm

I have posted this here as I have been asked to, to provide newsagents a discussion place that is open to all.

8 likes
Lotteries

Join the discussion

  1. Warrick

    It’s an insult to everyone who has installed the generation one retail image.

    3 likes

  2. Michael

    Warwick i disagree – any incentive is welcome in my business, however i would like to know how much margin the suppliers and shopfitters are making from this deal -pays to shop around and consider all options in my opinion – shopfitter has given me the specs so i can do ny own research

    6 likes

  3. SUBARU

    $8000 for a couple of screens? I could buy a couple of really nice, really BIG screens for home and still have left over change.
    And 0.5% of my commission to run them?

    Someone’s making money out of this deal.

    11 likes

  4. Bruce G

    I would like to see an estimate from Tatts on how much extra GP these screens would bring me. Otherwise it seems like I am helping them promote their Branding.

    6 likes

  5. SUBARU

    An expensive change in branding that no CURRENT customers will recognise (or see the point of)

    All while they promote online sales in direct competition of their bread and butter newsagents

    4 likes

  6. Amanda

    Mark, if you read the April 2016 edition of the Newsagents Association magazine (now called “The Channell”) it will give you some great information regarding this issue:

    Pg21 – DigiPOS
    “is now live with 24 sites already live across all jurisdictions”

    Pg 51 “The State of the Industry” –

    “NANA recently supported a member in a mediation process through the office of the NSW Small Business Commissioner which involved an attempt to resolve a dispute concerning NSW Lotteries’ DigiPOS. It now appears this matter may ultimately be referred to the ACCC and if successful in that jurisdiction, the outcome will have significant positive outcomes for all lotteries outlets”.

    What are your thoughts??

    1 likes

  7. Paul

    How is it not third line forcing from Tatts is what I’d like to know ?

    2 likes

  8. Mark Fletcher

    Amanda, hat is interesting. I have not seen the report. Newsagents ought to watch the action closely. That actin and the questions I raise ought to be matters newsagents individually raise with the ACCC and their own, state based, small business commissioners and similar.

    1 likes

  9. SUBARU

    I have raised it previously with the office of the small business commissioner. I have had a number of discussions with them.

    I have also re-raised it directly with local, state and Federal politicians since the announcement of Digipos (looking for an update on previous conversations) and have had not had any responses.

    The anti-small business nature of the current government is a disgrace

    0 likes

  10. Mark Fletcher

    The best way to raise it is to lodge a written complaint Subaru. And do it it in the context of double standards – what is required of you compared to what is required of a bigger competitor.

    1 likes

  11. Shayne

    I have seen the 0.5% fee for Digipos mentioned in quite a few places but I was under the impression it is actually 0.05% (50c for every $1000 in sales). Maybe someone can clarify as I dont have Digipos and therefore cant access that section on lotteries retailers web.

    0 likes

  12. SUBARU

    I have raised it in writing to many MP’s offices stating double standards, poor processes, and many other lines. The silence of the response is deafening.

    0 likes

  13. Mark Fletcher

    My experience is writing to MPs is a waste of time. I do it but it is rare any action is taken. Lodging a complaint through the formal processes of the SBC is the best step as well as a written, with evidence, complaint to the ACCC.

    0 likes

  14. Colin

    SA here. Again wondering what all the fuss about. Can anyone enlighten me or direct me to site giving background. Are these screens showing more than just keno ?

    1 likes

  15. SUBARU

    No offence intended colin, but this isn’t the first time I’ve heard the SA line before.
    I’ll quote Tatt’s line “We trialled this in SA for 12 months and never had a problem”

    My question is: What is so different with SA?
    The processes that have been introduced have done nothing except slow our customer service down, and make our jobs harder.

    How hard was it for you before these “new” processes were introduced?

    How much easier would it be for you if “proper” efficient processes were introduced?

    1 likes

  16. Colin

    None taken. But SA is not included in the announcement so excuse my ignorance.

    We have a digipos screen installed 2014 along with upgraded ticket machine. Maybe this upgrade brought SA into line with other states.

    2 issues strike me. We never paid anything for the upgrade, Tatts installed at their cost, including the screen. The screen is only for Keno…..are they used for other purposes outside SA …….advertising?

    I have issues with Tatts procedures and equipment but wonder if SA is out of line with other states.

    When in Melbourne next i will make a point of visiting an outlet and address my ignorance.

    0 likes

  17. Warrick Hosking

    Michael #2. Have you completed your Gen 1 refit yet??

    0 likes

  18. Michael

    Warrick 17 – just about there plans sitting with the tatts rep and following up today looking good! Btw i agree with shayne 11 – all my document suggest .05 which cheaper than license for my pos , accounting and office systems! I must have secured a good rate??

    4 likes

  19. Amanda

    Colin the issue is exactly what you have listed.

    You have not paid for your DigiPOS screen or its installation. In other states Tatts are DEMANDING that stores pay figure of between $7,500 and $10,000 for the installation of these screens.

    The fact Tatts is forcing agents to spend this money in other states, when SA retailers have not had to incur these costs is illegal.

    2 likes

  20. Amanda

    the Australian Competition and Consumer Regulator (Indiustry Codes – Franchising)…under Provision 6 – Capital Expenditure
    (1) A franchisor must not require a franchisee to undertake significant capital expenditure in relation to a franchised business during the term of the franchise agreement.

    (2) Expenditure that the franchisor considers is necessary as capital investment in the franchised business, justified by a written statement given to each affected franchisee of the following:
    (i)the rationale for making the investment
    (ii) the amount of capital expenditure required
    (iii)the anticipated outcomes and benefits
    (iv)the expected risks associated with making the investment.

    3 likes

  21. Colin

    Amanda,

    Shocking. I never realised.

    Is it down to the contract Tatts have agreed with each State. Cannot believe Tatts chose to give away money in SA. Maybe it was because we were the guinea pigs or a result of the licence to operate they have with SA government.

    0 likes

  22. Amanda

    Bruce G, it is illegal to force this equipment onto franchisees without as you said giving you the information (in written form) as explained in my post above directly from the Australian Competition and Consumer Regulator.

    2 likes

  23. Amanda

    Colin, its because it is illegal to force significant expenditure costs onto franchisees.

    Unfortunatly no state based or national association has challenged this.

    It has been the work of an individual agent to challenge this, and apparently the new NANA General Manager has helped support the case.

    3 likes

  24. SUBARU

    Call it conspiracy theory, but, part of me wonders if they made the conditions different for each state (in a “so-called” national system) such that the ANF or Federal government couldn’t step in, leaving it up to the individual state-based associations.

    When the announcement was made about the cost of shopfits, Mike Bairds office stepped in to offer “up-to” $10k towards the fitout. I estimate that our counter will cost “up-to” $30k including surrounding tiling and other ancilliary equipment.

    A simple re-skin/ re-veneer of the existing fixturing would cost a fraction of this.

    Suddenly an additional cost (not mentioned / agreed to in the new franchise contract we signed) of $8000 for Digipos equipment appears.

    Suddenly that additional “up-to” $10k from Bairdy doesn’t seem to go as far as initially planned, does it?

    4 likes

  25. Dave

    How can they justify charging so much for the Digipos
    Screens.I had a Shopfitter come in today to measure up
    For the new lotto fit out and Digipos screens.Any one receive any competitive quotes from shopfitters or are they more or less the same in price comparison ?

    0 likes

  26. Mark Fletcher

    Subaru: and your costs, regardless of the government ‘assistance;’ will be more and different to the requirements on your big business competitors.

    Amanda: newsXpress has challenged this.

    0 likes

  27. Amanda

    Subaru, its a gauging exercise by Tatts. Another supplier once again gauging the newsagency industry. Further to your conspiracy theory, the ANF has done nothing about this, and the new ANF magazine “The Channel” is basically an advertisement catalogue for those suppliers who control the industry and the ANF.

    Mark, if you look at the OTR stores in S.A and the Woolworths Plus outlets in NSW/ACT they have do not have to put the DigiPOS into those stores.

    From my understanding, the Tatts Franchise agreements refer to DigiPOS as equipment and it is illegal for Tatts to force significant equipment costs onto retailers. Tatts is attempting to dodge the situation by referring to DigiPOS as a fit out cost, denying it is an equipment cost.

    Dave, I would not be paying for any DigiPOS. Ask why you are paying for it, but Colin in S.A is not!

    1 likes

  28. allan wickham

    The issue here is really for those stores that have already completed shop fits and the rules have changed since being completed. Asking stores to spend even more money after completing fit outs in good faith is an absolute injustice. I think Tatts jumped the gun in rushing out their new image and had to back peddle when agents started closing instead of spending ridiculous amounts of money on the “new” image. Looking at Marks other post of the new drawings for the counter space allocation it looks like Tatts is retreating somewhat. I wont be spending one more cent on a lotto fit.

    3 likes

  29. Mark Fletcher

    While I don’t have Tatts and do not have a copy of the agreement or any specs, I suspect the case for DigiPOS being equipment needed to run the business could be made on the basis that the screens are network connected – with Tatts in complete control over content, from a central location. A fittest is fixtures and fittings unique to the business to a corporate image standard. The two are quite different.

    As for the ANF, it will continue to waste time and money promoting select suppliers as long as newsagents pay it to.

    2 likes

  30. Amanda

    Allan its not just an issue for those who have completed a fit out. It’s an issue for those who will have to fit out in the future also.

    0 likes

  31. Alf

    Have a read of the ANFs latest propaganda magazine
    Channel please read pages 50 & 51 State of the Industry
    You can draw your own conclusions ,but in general the content fails to tackle the real issues Newsagents face .The are references to Golf days and how important awards nights are !

    How these guys can be kept busy in a full time position is beyond me.

    As for Tatts pushing video screens how does this fit with promoting responsible gambling ?

    2 likes

  32. eric tjie

    we have our new lotto fitout done, i love the new design and i think it is worth to do the new fitout, my lotto sale has improved by 20% min and my digipos will be installed next week. For me , i don’t mind investing to improve my sales , but they should increase commission for those with new fitout as good gesture instead of penalising us.

    5 likes

  33. allan wickham

    Amanda, if I was to do the fitout now rather than 2 and a half years ago I would be about 20k better off….I know which I would prefer…..

    0 likes

  34. Michael

    Guys i rang my lotto rep today and was left quiet embarrased by anount of mis-information being discussed here – please you also check facts before communicate in the blog….0.05 is the fee and sa also do not have the digital screens just the keno game.

    5 likes

  35. allan wickham

    Theres a simple solution to that then Michael…..somebody from Tatts should reply on this blog….simple fix really.

    2 likes

  36. allan wickham

    Oh and just to note Amanda that Marks blog post is about an incentive open to those who have done a fitout from 2010 to may 2015. Not for future fits. Just to clarify.

    1 likes

  37. Sandeep M

    I was basically sent a letter offering incentive for my image which is now due, and am gladly happy about this not just about incentive but as allan @28 points out that basically gives me the space to put other itens which not tatts.

    5 likes

  38. Henry

    Agree Allan if Tatts replied on this blog it would clear a lot of things up! I do have to say however ANF helps facilitate a lot for this industry, one of which is clarity around some of the supplier initiatives including recent Newscorp trials and digiPOs bulk buys. in relation to the incentive , why wouldn’t we want this? If people don’t then don’t take it! Simple really in my mind…

    4 likes

  39. Mark Fletcher

    I suspect Tatts will be like the ANF when it comes to this blog. A comment would be seen as an endorsement of the platform. Anyone thinking that would be a fool.

    1 likes

  40. Warrick Hosking

    Michael, agree incentives are great but when I have already completed the Gen 1 image and I had to do it by a due date or a breach notice was forthcoming the changed the goal posts. My $28K fit out dropped to $18K. Yes, I was very pissed off to say the least and now they what me to spend another $8K+ on digipos. if Tatts had organised this properly I would not be $10K out of pocket.
    Amanda, the image at the start of this post is for Retailers that have completed Gen 1 fit out, not the ones who have to complete yet.
    Now you all can see why the $1K incentive is an insult.
    Hope you all have a great day and happy retailing.

    2 likes

  41. Jeff

    Warrick Hosking – what the? Insulting that they dont offer more incentives like this!! But with comments like this why would they ?! Dont wreck it for the rest of us!

    1 likes

  42. allan wickham

    Henry, the $1000 on offer is (as Warrick says above) an insult to those who have already invested far more money than we needed too. As I said earlier, I wont be spending another cent on (already signed off on) shop fit.

    The $1000 offer feels like throwing the mangy dog a bone but I suppose there will be Agents out there already sitting and begging.

    Heres an idea…….how about the Tatts shareholders take the cost of the digipos…..yeah right…….

    3 likes

  43. Amanda

    all mighty Allan.

    The significant costs of DigiPOS screens and installation are an issue for retailers upgrading their fit outs now, in the past and into the future.

    Michael, did your Tatts rep discuss why Woolworths Petrol outlets did not have to install DigiPOS screens? Or if Tatts are going to start charging OzLotteries.com 0.05% to control the content on that website?

    0 likes

  44. Warrick Hosking

    Could the above newsagents please reply with what the Gen 1 refit has cost them?

    0 likes

  45. SUBARU

    Also need to know what grade of shopfit also.

    If you are a smaller shops pr a larger shop.

    0 likes

  46. allan wickham

    Really Amanda?

    The cost IS significant to ALL retailers and I would never dispute otherwise. My comment was in direct relation to the content of Marks post…..a question re Tatts e-mail to agents, offering incentives for those that have ALREADY DONE the fit out. Sorry for commenting on the ACTUAL question.

    The fit out IS expensive but also a WHOLE lot bloody cheaper than it was when I did mine. So why should I pay any more?

    4 likes

  47. Warrick

    Subaru, class C store $28.000.00 no Digipos.

    0 likes

  48. Amanda

    You shouldn’t have to pay any more Allan. That is why i posted at comments (6) and (20). Nobody should have to pay for DigiPOS.

    If Tatts want DigiPOS in stores they should be paying for the screens and for it to be installed. Tatts need to have approval from the majority of franchisees before imposing such significant equipment costs onto franchisees.

    There could also be argument as to why the content is not charged at a fixed price rather than a percentage of turnover, but because they have done this it justifies that DigiPOS is a piece of equipment just like the terminals and should not be a fit out cost to retailers.

    Allan we are on the same side on this, research my points at comment (20) and you will be wondering how Tatts can charge for DigiPOS.

    Then ask yourself how Tatts and the retailer (with NANA) did not come to a resolution in a dispute mediation? If Tatts are doing things legally, a resolution to the dispute would have been reached. If its headed to the ACCC, then Tatts are doing something wrong.

    0 likes

  49. Mark Fletcher

    For the record, Lara, Michael, Henry and the most recent Jeff on this thread are all posting from the same IP address.

    Comments earn more respect if you are public about your identity.

    3 likes

  50. allan wickham

    Fair enough Amanda, the “all mighty” comment was a bit much though…lol.

    So where do Lara, Michael, Henry and Jeff hail from? The mind boggles…..not!

    0 likes

  51. Amanda

    Michael, Henry and Jeff sound like they are either ANF or VANA…

    1 likes

  52. Mark Fletcher

    The IP address indicates a QLD location.

    My view is everyone is entitled to their opinion. The opinions of those who use a real name and real email address carry more weight than someone using multiple names and fake (for the most part) email addresses.

    1 likes

  53. Paul

    LOL ! Thats funny Mark. What was the city location ? I’m guessing Brisbane which points to only two likely rats. QNF/ANF or Tatts .

    1 likes

  54. Mark Fletcher

    Paul, yes, Brisbane. Various IP address check services say it is through iiNet.

    2 likes

  55. allan wickham

    A class store here and was probably 30K +.

    1 likes

  56. Warrick Hosking

    Jeff #41, Where is your store and have you done a Gen 1 refit yet. If you have are you accepting the $1000.00 incentive to upgrade to Digipos.
    I’d like to come and see your store sometime. That’s if your a newsagent.

    1 likes

  57. Jeff

    And this Jeff is not Lara’s little Jeff ok, she is a stooge who is likely to be at your Tatts meeting.

    0 likes

  58. Warrick Hosking

    Jeff, please answer post #56

    0 likes

  59. Steve

    I’m glad Lara’s been outed as a stooge. Her first couple of comments were that stilted and disjointed I thought Mark had gone all AI on us and installed a chatbot.

    2 likes

  60. Mark Fletcher

    Haha Steve. That Lara, Michael, Henry and the first Jeff are all posting from the same computer indicates they have an agenda. If they are from the ANF or from Tatts they should say so and own their opinions. People will disagree here. That’s fine. In fact, it is good because disagreement challenges us to reconsider our own respective positions.

    People who hide like these four (or one) have / has suggests they are not sure of their stated position.

    2 likes

  61. Warrick Hosking

    The silence is deafening!!!!!!!

    1 likes

  62. Warrick Hosking

    I’ve got a great idea, Lara, Micheal, Henry and Jeff, seeing you are all in Brisbane I’ll be at GNS next Friday at 11.30am. Would like to meet you all and discuss this matter in person and while your there you’ll be able to restock your Stationery department. See you then….

    4 likes

  63. Mark Fletcher

    The IP address for the ‘group’ is: 124.170.90.199.

    1 likes

  64. SUBARU

    Just out of interest, has anybody been to a Tatts “training” night recently?
    How are any comments made by newsagents received by the area managers and upper management?

    0 likes

  65. Mark Richardson

    To the person who posts under multiple alias ,

    As Donald Trump stated ” It shows how weak they are it shows how pathetic they are”

    2 likes

  66. Mark Fa

    Has anyone in QLD been to the QLD General Manager’s Roadshow’s (started 20 April) yet and raised these issues and the issues to do with SOS directly with him at this forum?

    0 likes

  67. Bill

    I went to the roadshow last week and tried to have a chat with the RTM and Steve Urquhart, however every concern i raised went in one ear and out the other.

    I’m new to the industry (less than 3 months), however from some of the comments above i’m lead to believe this is the norm?

    3 likes

  68. Mark Fletcher

    Welcome Bill to the blog and the newsagency channel. It’s great to have new retailers here.

    2 likes

  69. shauns

    Subaru , our meeting is not until the 4th of May

    0 likes

  70. Bruce G

    Yes I talked to the general manager and my rtm at the spotlight meeting but it seemed that my SOS concerns run a poor second to the messages that were spruiked at the meeting.Not as important it seemed.

    0 likes

  71. Mark Fletcher

    I have heard from a newsagent today saying they have been told to ignore what is being said here, that it is only a few ‘restless natives’. That comment is as disgusting as it is ignorant.

    Hopefully, the ACCC will look closely at the situation I have laid out in the letter I send on behalf of newsXpress members, and bring an independent perspective to the situation.

    1 likes

  72. allan wickham

    I have a great relationship with my RTM but it doesnt matter who you deal with at Tatts they are all going to gloss over the real issues and trot out the company lines. Who can blame them really after all that is their job and Tatts is their employer. We all know that senior management wont engage with a public conversation like this blog provides.

    2 likes

  73. SUBARU

    One of the main questions that needs to be asked BEFORE the meetings is:

    Can you show a report proving scratchie sales are down?

    I need to look as well. I suspect they are.

    I know I have a lot of pissed off customers. I even encourage them to email Tatts themselves directly to complain. If Tatts won’t listen to us, maybe they’ll listen to the people that wish to purchase the product

    2 likes

  74. subaru

    Update to this. I have just run a report through my POS system and, comparing April 2015 to April 2016 (to compare “with” and “without” SOS) my Scratchie sales are down.

    0 likes

  75. Bruce G

    I ran a report for a fortnight (Monday to Sunday for 2 weeks) in April 2015 vs 2016 and sent it to Steve Urquhart Tatts. Down 17% on numbers sold and down 5% on value sold.

    0 likes

  76. Warrick Hosking

    Re post #62

    For all of the genuine people on this post that would like to know, it was a no show from Lara, Michael, Henry and Jeff on Friday.

    I suspect they were close by, very close, but didn’t decide to reveal their identity.

    3 likes

  77. eric

    i have just had my digipos installed , it is no doubt attracting more business.

    2 likes

  78. eric

    we also installed digipos on the blade and it looks good to me

    1 likes

  79. pat

    Do a quick search for Cameron Hanns ,one of the 2 suppliers ,and have a look at the the work he is doing for the tatts group re their betting agency u bet.

    0 likes

  80. allan wickham

    Got any actual links Pat? None of my searches gives me video i can play.

    0 likes

  81. Judy

    you could try this one Allan, I think that’s what pat’s talking about – https://vimeo.com/134699658

    0 likes

  82. pat

    Sorry Allan ,only just got back on computer.But thats it Judy posted (thanks for that Im one of the computer illiterate ,links are beyond me I just google stuff }
    Looks pretty impressive ,Id be curious as to whether or not the 1200 pubs n clubs have to foot the bill

    1 likes

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image