It was announced yesterday that newsagents can increase delivery fees charged for home delivery of Fairfax newspapers. However, the announcement was more spin than news:
– While the fee increase takes effect in NSW next month, Victorian newsagents will have to wait a year.
– Fairfax rejected a claim by newsagents for permission to charge a fuel levy.
– Fairfax will not pay any increase to newsagents who pay outside their credit terms.
– Fairfax rejected a claim by newsagents for compensation of late newspapers.
– Fairfax rejected a claim by newsagents that very heavy newspapers being delivered in two parts are classed as two papers for fee purposes.
– Fairfax refused to increase handling fees paid to retain newsagents for assembling Fairfax newspapers despite labour costs increasing in some of these outlets by more than 25% over the last two years.
By my reckoning newsagents lost 85% of their log of claims.
It’s unfortunate that newsagents are shackled by newspaper publishers – they have no control over wages and operational costs nor do they control the cover price for newspapers or the delivery fee charged. In fact, publishers discount home delivery offers and expect newsagents to take a commission cut as a result of their promotional campaign. Who would go for a business model like that?
Australia is regarded by many publishers as having the best newspaper home delivery model in the world. This is, in part, due to the thankless efforts of newsagents delivering day in day out for ever shrinking fees. The increase announced by Fairfax yesterday still leaves newsagents worse off than they were 20 years ago.