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Three questions for distribution newsagents

  1. Do you charge sub agents to deliver newspapers to them?
  2. Do you charge sub agents to pickup returns from them?
  3. Do you pay sub agents at least the publisher mandated commission?
11 likes
Ethics

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  1. Chris

    1) No
    2) No
    3) Yes, we split commission 50/50

    1 likes

  2. Jenny

    1) no
    2) no
    3) yes

    2 likes

  3. CARL

    NO
    NO
    YES 50/50

    1 likes

  4. Brett

    no
    no
    yes

    1 likes

  5. Dean

    If you are splitting the commission 50/50, then in Victoria you are not paying the publisher mandated commission for NewsCorp products, and are in danger of losing your NewsCorp contract. You must pay subagents 12.5%, leaving about 10% for the distribution agent

    2 likes

  6. Matt

    We can split 50:50 and be nice people.

    But, when we look into the issues, esp. in the city CBD’s, involving “city” convenience stores, look into the issues many newsagents facing:

    we start at say 4.30 or 5 in the morning and deliver the paper every single day,then collect their returns, do the billing,send it, go and collect the money, many times get the reply -“owner not here”.

    what they do open 6 or 7 or 8’o clock or whenever they get up. I have sub agents who are not even able to differentiate the four different papers by name and book their returns in a form.Worst many dont know that SMH (mon- fri),Sat SMH, Sun Herald are the one and same paper. Many couldn’t recognize that the sat AFR is the same as weekdays financial review as the title is published as “AFR weekend”.
    There is no point in informing or educating them as 1 shop last year changed hand 3 times.Even then around 10 staff work throughout the week.The message you pass simply doesn’t flow among them.

    who will compensate the time lost working , teaching, paper work involved in dealing with this people.

    But there are many family run business, who do an excellent work and they should be rewarded with good margin and service.

    0 likes

  7. Dean

    Matt, I am not saying that distribution agents don’t deserve more money, on the contrary we are underpaid. We are distribution only with nearly 100 subagents so understand this better than most.

    I think 12.5% is fair to both parties. Smaller subagents due to higher costs in managing their account I think we should get more perhaps 15-20%, with them getting only 5-10%.

    For home deliveries, I believe we should be paid about $0.80 per paper per week more than what we are.

    We have actually closed a number of small agents over the last few years as we were losing money on them once you take into account all of our costs in managing them, especially if you also had to continually chase them for money.

    What I am saying is that if you are not giving your subagents 12.5% on NewsCorp products in Victoria (I don’t know about other states) then you are in breach of your contract and could find yourself losing NewsCorp distribution rights.

    2 likes

  8. Chris

    That’s funny, News Ltd taking away distribution rights. They are lucky to have newsagents who actually want distribution rights. The days of worrying about a News Ltd threat finished 10 years ago.

    9 likes

  9. John

    1 – NO
    2 – NO
    3 – YES

    Dean, the dropping of Distributor commission was nothing but a CASH grab by News.

    They didn’t have the guts to do this at Retail level (I suspect knowing retailers would push papers to the back of the store).

    Distributors were an easy target. I made the point quiet clearly to News (the people are now long gone!), if they did this I would no longer be able to supply twine and bundle headers for returns and further explained that we would no longer undo and check and re-bundle, subagents returns.

    All Distribution expenses have gone up. The worst decision made by Newsagents was to agree to fixed fee with annual review.

    The annual review needs to happen in July/August each year NOT as current in March – where we are at least 9 months behind on wages etc. Where is the ALNA on this?

    John

    3 likes

  10. Steve

    John “Where’s is the ALNA on this?”, same place they always are, busy organising next years industry awards and knee’s up’s. I have come to the conclusion that that’s their major reason for existing because for month’s before last year’s WA pocket pissing competition all ALNA emails I received seemed to be about Industry Awards first and foremost.

    5 likes

  11. Dennis Robertson

    1. No
    2. No
    3. Yes and Dean is correct.
    In South Australia at least
    All retailers receive 12.5% margin
    Distribution Newsagents receive rate per copy sold……
    For the Mon-Fri Advertiser $0.156 or 10.40%
    For the Sat Advertiser ……$0.260 or 8.66%
    For the Sunday Mail ……..$0.325 or 10.83%

    In addition, the rate per copy for Distribution Newsagents is locked in on an annual basis and as a consequence we receive no immediate benefit from sales in retail outlets whenever there is a cover price increase.

    And yes Dean, Distribution Newsagents will lose money supplying small outlets. To be balanced, this loss is partially offset by not having to be involved in the returns process for Coles and now Woolworths.

    2 likes

  12. James

    How are Agents handling Distribution Fees for Magazine Supplements like the Wellbeing Series from Newscorp which attracts a 20 cent per copy payment as i understand it.

    0 likes

  13. MARK. R

    You don’t have to be blind Freddy to see there is no future in newspaper distribution News Ltd have total control ,in SA metro newsagents agreed to “migrate” their customer accounts to News Ltd

    All stop ,starts and billing is controlled by News Ltd which at the time appeared to cut costs for the agents. However the savings which were made at that time have been eroded by News Ltd reducing margins.

    At the time of migration newsagents were in a position to negotiate a better long term arrangement as they had the customer base which News Ltd. wanted.

    But poor negotiating skills or probably none has left them in a poorer situation ,Newsagents are now at the mercy of News Ltd to lift the fixed delivery fee to keep inline with increasing costs ,

    Not Happening ,Very Sad Situation

    4 likes

  14. Dennis Robertson

    MarkR, it always has been a take it or leave it deal with News Corp. That’s why the ALNA by it’s very existence is an absurdity. Perhaps a bit harsh, perhaps incongruity is a better/broader descriptive word for the ALNA.

    News Corp operatives are as cunning as the proverbial shithouse rat and know exactly how far to go when slicing and dicing Distribution Newsagents. I know some that would take that as a compliment.

    So why the 3 questions MarkF, is there another rogue out there upsetting our retail friends?

    1 likes

  15. Colin

    As a Transitioning Newsagent the discussion seems totally irrelevant. 12.5% in SA amounts to less than $100 a week gross profit for my shop.

    I no longer care if I run out NewsCorp papers and certainly do not request more. I no longer question the random quantities supplied. I stopped putting out the flyers everyday mid last year, assisted by the fact they turn up less than 50% of days. I binned the “A” frame as it made us look like an old style newsagent. 80% of paper customers buy nothing else or the lottery. We have now put the opening times back to 8.30am which will hit their sales again …. but less so gifts, cards etc

    And shock horror, contrary to a previous post by me. We now give out free the local “Courier” to customers. Since we make no net profit from paid for newspapers, why not give out freebies. It keeps us in touch with locals with NewsCorp having stopped some neighbouring delivery rounds. This freebie now sits next to the Advertiser !!

    Unconcerned with their final demise which is surely coming soon.

    6 likes

  16. MARK. R

    Colin I agree with your sentiments Advertiser are fighting a loosing battle when it comes to retail sales
    their newspaper no longer justifies prime retail space

    However this thread is about distribution Newsagents
    their situation is dire.

    Dennis Newsagents were in a position of strength when they held their customer accounts ,you can negotiate with News but you must be united and stand your ground.

    I know of Newsagents who have actually promoted News Ltd cause at the expense of their fellow Newsagents just crazy stuff

    0 likes

  17. Mark Fletcher

    Yes, this thread is for distribution agents.

    0 likes

  18. John Fitzpatrick

    Mark,

    Off topic maybe a new one (?)

    News via its iServices platform, makes available Stop/Start files on a daily basis.

    For some time despite repeated requests from SA Distribution Newsagents (I believe some in Qld are having the same problem), the Stop/Start download Tab is still broken.

    We have been asked to clear the Cache before logging in, we have tried moving our system clocks to Eastern time, nothing seems to work.

    The worst aspect is the total random nature of the error, some days OK, others no files or maybe downloads 3 of the 5 Stop/Starts needed.

    How can a business the size of News, allow a website its Distributors use everyday to BROKEN?

    It seems from a Newsagents perceptive, no body cares in News Sydney.

    Is anyone else having these problems?

    John

    2 likes

  19. Mark Fletcher

    John because News Corp. sucks at IT. They always have, especially our of Holt Street in Sydney. This is a simple tech issue they could fix if they really cared about newsagents.

    0 likes

  20. Dennis Robertson

    I’ll have one more go at it.

    So why the 3 questions?
    Is there a brief story or purpose behind the request?

    0 likes

  21. Amanda

    Mark R, I have to ask naively, what positive negotiation with News has been achieved in the past 25years?

    Weekday – 10.40%
    Sat – 8.66%
    Sunday – 10.83%

    It would appear that the SA model, dominated by Distribution agents has been an utter failure, merely designed to play into the hands of News and prolong the distribution of their product at the expense of others.

    2 likes

  22. May First

    Mark, could you start a thread on iServices in the hope that one day News Corp could start to care about the fact that their provided IT platform is completely inappropriate for the task it is given?

    1 likes

  23. Mark Fletcher

    Will do May.

    0 likes

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