In an email bulletin to newsagents (28/10), the Australian Newsagents’ Federation indirectly and subtly invites newsagents to consider boycotting IPG, distributor of a range of titles to newsagents. They have done this as a result of IPG entering into a newspaper supply arrangement with News Ltd for supply of newspapers to major city hotels. Here is the text of the bulletin:
Raw Deal for Newsagents from IPG
DID YOU KNOW?
There is a company in Australia called Independent Publishing Group (IPG). It is a privately owned independent publishing company that specialises in the supply of publishing services. IPG has been independently judged by BRW and Deloitte Touche Tohmatsu as one of the fastest growing companies in Australia.
WHY DO YOU NEED TO KNOW THIS?
This is the company that negotiated an exclusive deal, as far as we know, in February this year with News Ltd to supply all Hotels/Motels in NSW with the sales of the Daily, Sunday Telegraph and The Australian newspapers. The deal is fascinating in that it provides the Hotel/Motel with a 75% discount off cover price on standard 25 daily papers. These may be any mix of the Daily Telegraph or Australian (Monday to Saturday) and The Sunday Telegraph.
AND THERE’S MORE!
In addition they offered 34 complimentary TV guides and a monthly copy of Vogue!! (great demographic study there!!)
Delivery is to be carried out by Nationwide News and the billing is direct to the motel through IPG. So! IPG are picking up the order and the money – News is delivering the goods. Hmmmm – 75% off cover price and the other 25% to ????? For gathering the orders and sending the cheque!!! Money for jam and News must be delighted that they can now provide these newspapers at 75% off cover price. In fact that would be 100% free!!! But of course that would be invoiced and audited and of course IPG get paid a goodly sum for paper shuffling.
AND THERE IS EVEN MORE!!
IPG, for you newsagents who are incensed over delivery fees, is HEAVILY reliant on newsagents for the sale of its newspapers – what is supposed to be its core business.
AND WHAT WOULD THAT BE?
You – the Newsagent – are happily selling IPG’s products!!
IPG – who can’t get into supermarkets and convenience stores without a lot of money and difficulty – are selling through loyal newsagents.
And we are supporting them while they do the big lucrative deal with the likes of News Ltd.
The products that you currently stock and support on behalf of IPG are the following:
1 International Express
2 British Football Week
3 The Guardian Weekly
4 Weekly Telegraph
5 Corriere della Sera
6 Weekly Sport
7 Inside Football
8 New Zealander
9 Ex-Pats Investor
My concern is the double standards demonstrated here. Newsagents recently had the commission they earn on Vodafone recharge transactions cut by 37.5% and the ANF berated newsagents rather than suggest any action; newsagents have just had their application for fuel price relief rejected and the ANF has remained silent of any possible action; newsagents have lost the Apple iTunes recharge opportunity to Coles and the ANF has published excuses rather than suggested action.
As an industry association the ANF is clearly having difficulty representing newsagents on issues to do with some suppliers compared to others. Like any industry association, the ANF needs to be consistent. They will achieve greater respect from newsagents if they achieve this.
On IPG the ANF would better serve newsagents by developing a tactical response. Indeed, given that this is a situation the ANF has had knowledge of for more than a year, one cold reasonably expect that this was done last year. The ANF should: inform newsagents of the facts (without emotion); build business plan assistance for the newsagents affected; write to the customers contracting with IPG (informing them that they are putting Australian jobs at risk); create a public relations campaign (small business being done over by big business; buying Australian versus buying through a UK company; keeping jobs local); make representations to News Ltd (with these being put on the public record); seeking out other opportunities for the affected newsagents; providing standard form contracts to enable newsagents to lock in current arrangements.