Now that we have the local edition of Top Gear, the question is what do we do with the UK edition which is being airfreighted out? In my newsagencies we will carry both. Top Gear is a strong franchise and the UK magazine has a good following which will not be significantly hurt by the local edition. We will treat these as we do the multi edition fashion titles like Vogue and display them next to each other.
The Bill Express (and related entities) creditors meeting today was fascinating. In barely an hour plenty was covered:
Talking to people after the meeting, the common question is how could such a business collapse. It was a no-brainer. Sure the margins on rehcarge are tight. But manage your cash well and you will be okay. Cash is where most of the questions about Bill Express lie. Questionable transactions. Money flowing overseas? Paying for assets not registered to the company. Taking on debt for other entites.
No wonder Bill Express’ suppliers, respected names like Optus, Vodafone and Telstra shake their heads at how what should have been a sound business crashed to a burning heap owing hundreds of millions.
The next week will probably see administrators appointed to OnQ. Maybe ETT too, the public company 43% owned by Bill Express. If I am right, this will be three public companies in ruin. The question then will be where were the regulators in all this?
I am grateful to the 77 newsagents who appointed me their proxy for the meeting. I received another 10 proxies but the form used was the ANF pre-completd proxy form so I gave these to Don MacAskill of the ANF prior to the meeting. I received another 17 proxies too late for the meeting.
Newsagents were sent correspondence from the ANF yesterday suggesting that the organisation is acting on their behalf in relation to the lease payments for the now useless Bill Express equipment. These are the same leases the ANF recommended newsagents sign in 2003/04.
Given that the ANF is not a party to the lease and has no agreement from Newsagents to act on their behalf in this matter at this point, I wonder what their motives are? How can they act on our behalf when we are dealing with a Group of interwoven Companies whereby many are in Liquidation, subject to ASIC, Federal Police and Corporate investigation? I will be interested to see what the legal team representing newsagents has to say about this interference by the ANF.
I am grateful to the newsagent who brought this issue to my attention.
Our display for Gardening Australia at the counter is two days old and sales achieved from this point are four times what we would usually achieve in the first two on-sale days for this title. I put the success down to a great cover and feature (on Peter Cundall) promoted in the right place for impulse purchase. I saw this first hand this morning when someone brought the Herald Sun to the counter, saw the magazine and commented how much they like Cundall. They also said they don’t usually buy the magaizne.
The latest issue of Vogue India is out today and I took the opportunity to check sales. While our allocation is small, Vogue India is a sell out – perfect in magazine performance. I see special interest tiles like this which leverage a strong masthead franchise as an excellent business opportunity for us. Each of our newsagencies where this is working we do not have a significant Indian demographic. For newsagents interested, Gotch is the distributor.
Here is advice for newsagents on how to remove Bill Express hardware. Whether you should remove the equipment or not is a decision you need to weigh up carefully – there is a possibility the network could be running again some day. Please note that each situation may be different. If you are not sure get a professional to remove the equipment.
The only downside of doing this is that the screens which the Swish group made a fanfare about bringing to its network will no longer work. However, I suspect their ASX announcement was a bit of hot air. Smart newsagents are making good use of the screen and running their own in-store ads.
My understanding is that OnQ, a major shareholder in Bill Express, will slip into administration today or early next week. I’d expect this to be followed by ETT. If this happens, three ASX listed companies will have collapsed as part of the Bill Express mess. Today’s Australian Financial Review devotes a full page to the mess. The Age also continues its excellent coverage.
Instant scratch ticket sales are up on the same period a year earlier. Our numbers dipped when we were out of stock last weekend. The replacement of Tattersalls instant scratch ticket product with Intralot product has not hurt at all. The Intralot online games, Keno, Lucky Lines and Bingo are pulling good interest too. Their advertising is driving good traffic.
Newsagents ought to check out their nearest Office Choice outlet. The re-branding has brought new energy to the office supplies group. While in most cases, newsagents serve different customers in the stationery department than Office Choice, it is worth seeing the change then have undertake.
The ANF bulletin sent out tonight contains disappointing and false assertions.
The ANF bulletin says: The ANF is aware of a fax that was recently distributed nationally by Tower Systems. The fax contained some misleading and false statements in relation to ANF initiatives on behalf of newsagents.
I say – the ANF bulletin publishes no information which demonstrates that what I published was false or misleading. The claim was made on letterhead from a business representing Suncorp.
The ANF bulletin says: FACT: Touch solutions began talking to the ANF and Tower Systems about providing value added services to the newsagent industry early this year.
I say – this statement is, at best, inaccurate and at worst an outright lie. Tower released the value added services through eziPass in October 2007. The ANF promoted this in its own bulletin. Why then would they try and revise history?
The ANF bulletin says: FACT: The St George help desk provides assistance to both ANF and Tower Systems.
I say – Last week St.George established a separate Tower only help desk in part to resolve the challenges of what look like competing offers – the Tower offer and the ANF offer.
The ANF bulletin says: FACT: The ANF does not receive any commission on pre paid products with Suncorp or St George.
I say – the ANF needs to declare its commission, rebate and or other revenue arrangements associated with mobile recharge, phonecard and other product sales and merchant services transacted. The above ‘fact’ statement is not helpful without full disclosure. If the ANF makes nothing and its to make nothing why are newsagents asked to nominate ANF membership.
Several months ago Don MacAskill acting CEO of the ANF called me late one evening and asked if he could promote the Tower eziPass platform to newsagents alongside an offer from St George and Suncorp in the ANF bulletin. I advised I am okay with this as long as he understands there would be no revenue for the ANF as the Tower work was being done pro bono for newsagents. He agreed. The ANF promoted eziPass in an email that went out that night and once more a few days later. That was the end of it.
Tonight’s email from the association continues its poor track record of service and transparency on Bill Express related matters. I want the ANF to act as an association and not a commercial body.
This public dispute with the ANF is not edifying for them or for me. My issue is that newsagents deserve better representation. Te ANF had a great opportunity several months ago to start afresh. It did not choose this course and has had to spend much time since defending the indefensible about Bill Express.
The ANF announced to its members on Tuesday that the ANF (acting?) CEO met with the Bill Express Administrators on Monday. They provided a Q&A about issues discussed at the meeting – suggesting they are on top of the Bill Express issues and that they have information from the Administrator. Why, then, did the ANF only discover today that they creditors meeting is to be held tomorrow? I suspect the first the ANF heard about the creditors meeting was at this blog. The Administrators letter to creditors is dated July 10. If I was meeting the Administrator Monday I would have made the claim then about newsagents being creditors.
VANA sent out a communication to newsagents today saying that newsagents should send proxies for the ANF if newsagents are owed commissions. This is not well thought through. Every Bill Express newsagent who has taken a bill payment between February and when the company collapsed is owed money because of the Bill Express decision to hold back bill payment money for a marketing fund. This is different to recharge commission.
The ANF has today faxed to newsagents calling for them to vest their proxy to the ANF. I have a problem with this given the role of the ANF in promoting Bill Express to newsagents in the first instance.
Any newsagent wanting me to act as their proxy at the creditors meeting tomorrow should email me mark@towersystems.com.au. The deadline for us having the proxy form is noon tomorrow. We can arrive at the meeting with these.
Bill Express has apparently appointed Debtsec Pty Ltd to collect money from newsagents which may be owing for phone recharge product sold through the Dialtime terminals. Debtsec has written to newsagents advising of their appointment and indicating the amount owed. In at least one instance, the amount Debtsec has asked the newsagent to pay to them as at July 13 was taken by Bill Express from the Newsagent’s bank account four days earlier.
Click here to download a copy of the (1MB) 22 page document issued by PPB, Administrators of Bill Express. The documents include details of the creditors meeting to be held at 1pm tomorrow in Melbourne at the Marriott Hotel. Click here for a smaller file containing the proof of debt and proxy forms. I will be attending the meeting with our Financial Controller.
Newsagents are creditors of Bill Express because the company has withhed 20% of our previously agreed Bill Payment revenue to be spent on a marketing campaign which never materialised. They also withheld 10% of our revenue for administration costs which I would consider is an amount we could dispute. To calculate the amount Bill express owes you calculate the number of bills paid between February and when Bill Express died and multiply this by 20 cents.
Like 3,500 other newsagents, I am a creditor of Bill Express. I am disappointed to read in The Age today of a creditors meeting tomorrow at Melbourne’s Marriott hotel. The Administrator ought to have advised newsagents of this meeting. I plan to attend.
As I blogged on June 14, Bill Express owes me close to $2,000. This has accrued since February 2008 when the company started withholding commission it owed on Bill Payments precessed in my newsagencies. The portion of my commission it withheld was to be used for marketing the service. This marketing was never done. Therefore, I and 3,500 other newsagents are creditors.
Computer magazines are morphing into entertainment equipment magazines, just as computers are becoming the hub of home entertainment content reception and management.
The current issues of PC User and APC would look more at home next to home entertainment titles – especially with headlines like Big Screen Bliss and Best HD TVs. I think this is a move we will make in our newsagencies – shifting these morphing computer titles right to the edge of the category – rather than at the start where they reside now – next to home entertainment category. Computers are the new TV / home entertainment system after all. The shrinking computer category will be left with pure computer titles.
Click here to download advice we faxed to newsagents yesterday on Bill Express. We put this together based on the many questions newsagents still have about the fall out from the Bill Express mess.
The trend of falling commission on mobile recharge in the UK continues. Mobile Today reported yesterday that Vodafone has just announced a commission drop to between 3% and 4% for newsagents.
One way telcos can help their retail partners weather commission cuts is to work with them on more efficient lower operational cost in-store platforms. Yes, I hve an agenda with this comment. Our eziPass platform is more cost effective for newsagents that separate terminals: faster selling, easier selling, less fraud and easier record keeping.
We have introduced a small scrapbooking department at Forest Hill. While we are yet to finish the presentation – as you can see in the photo – products are already selling. As our knowledge of the department develops, we will expand the offering. It was a smart move by the team at the shop to choose this location near the scrapbooking magazines and opposite the art department.
The following advice is provided by Blackhawk for newsagents where their Gift Cards were offered through the Bill Express / Dialtime package:
All merchants who were selling Gift Cards, and have been effected by the DialTime terminal’s going down, please hold onto your stands, as an alternative connectivity is being developed which is a few weeks away from being available for their use. Please feel free to contact us on info@bhnglobal.com, which will also provide a clear channel for all future communication on their Gift Card Stands.
Gift Cards are huge business in the United States. We are several years behind in embracing this opportunity.
We are breaking with tradition in promoting the latest issue of Gardening Australia at our counter display space this week. Coverage of Peter Cundall’s farewell from the TV show behind the magazine is enough of a reason to give over this premium space we usually reserve for titles with a good free gift. This month’s Gardening Australia is certainly a collectors item which I am sure will connect well with the Forest Hill demographic.
I am disappointed that the publisher provided just one poster to support the special issue.
The ANF has changed its advice on the Bill Express direct debit but its recommendation remains unclear. NANA and the QNF are having no such difficulty in providing advice to their members. The level advice from the QC who has prepared the Class Action is that newsagents should not continue to pay for the lease of the equipment, advice that newsagents cancel the direct debit. Newsagents ought to get their own advice on this, I provide information here as to the advice provided to QNF and NANA members for information only.
It has been suggested from people who would know something of the sale of the Technology Business International debtors to Mobius, part of Allco, that great care was taken on the appropriate structuring of the transaction. I guess this is part of what will ultimately be tested in court.
Intralot
With the collapse of Bill Express, many people have been left without the ability to load funds on to their BOPO card to make payments. To assist BOPO cardholders, SCX Global is offering a free CANVAS Prepaid Visa Card, for a limited time only, when you apply online. Simply enter loadcashplay in the promotional code when applying online for a $1000 CANVAS card and SCX Global will waive the purchase fee.
CANVAS Prepaid Visa Card allows you to shop and pay wherever Visa prepaid is accepted (the same as BOPO). CANVAS currently has a reload network of over 1500 stores including the ability to load via BPay.
Newsagents can sell CANVAS cards directly to consumers by having physical cards available for sale in store thanks to our eziPass platform. Visit the eziPass website for details on how you can sell Visa Prepaid cards including Gift cards, Money Transfer cards and online shopping Virtual Visa cards.
UPDATE: Anyone who applied today using the promo code and was asked to pay to contact CANVAS customer service on info@mycanvascard.com.au and they will gladly process / refund any payment for free.
