This is a story you will not read in your newspaper. It is about how some newpspaper publishers treat small family businesses.
Years ago, when a publisher ran a home delivery deal, they would pay newsagents what the margin would if the paper was sold at full price. As I wrote here last year, I know of newsagents getting less than half to deliver to customers who have accepted deep discount deals. To go from a slightly profitable customer relationship to one which is loss making because a supplier decides to discount is another reason more newsagents are walking away from home delivery.
So, what is the answer?
I’d like to think that if I were a newspaper publisher I would be investing in a key asset such as the newsagency channel rather than starving it.
Publishers can stop newsagents handing back runs by:
- Providing fair rewards for what publishers say is the best newspaper delivery system in the world.
- Provide newsagents with mechanisms which respect them as business people and not as process workers.
- Taking total responsibility for subscription deals rather than forcing newsagents to share the cost.
- Giving the service more visibility – help newsagents be proud of what the de for the publishers and newspaper subscribers.
Newspaper home delivery is unlikely to grow. That does not mean that those providing the service ought to be treated with the contempt I see in some states today.
When I left the Board at the end of 2004, the ANF had the data necessary to guide newsagents to make real progress on representation around the delivery fee matter. It is clear that this opportunity was squandered. While there has been some noise over the last week, for many it is too late.
My proposal in 2004 was that newsagents call for a Productivity Commission review of the home delivery model, as review of the 1999 deregulation if you like. Such a post deregulation review is not unusual and would be good government in action. Unfortunately, I was unable to muster support from newsagent repreentatives to push for such an inquiry.
The situation today is serious. The publishers know it. Some are responding by investing in infrastructure to take over delivery. This is not the answer as each territory handed back is another (often meagre) income taken from a family.