Several publishers are offering to replace the prime position occupied by Alpha magazine – next to newspapers in newsagencies. This follows the move by News Ltd to cut newsagent margin on Alpha by 40%. It will be interesting to see if newsagents have the guts to move Alpha and if they do, the impact on Alpha sales.
Publishers interested in proposing such a move should make contact through newsagency marketing groups as they have the best mechanisms of compliance.
My opinion is that Alpha should be moved away from its prime position immediately. This prime space must be preserved for titles from which we receive premium margin and for which we have publisher commitment to respect our support in building success for a title. Alpha is an opportunity for us to show how we feel about supplier decisions which harm our businesses.
Unfortunately, I suspect that newsagents will not move Alpha from its prime location – in part because of fear of retribution from News Ltd. and in part because of ignorance.
Why should there be any retribution from News Ltd??? I thought I owned my shop, paid the rent for the space for their products to sit.
Look at contracts from our “industry partners”. It’s all about us doing what they want and what will happen if we don’t do it. Yet if they miss a delivery or credit, etc, there’s no compensation for us, not even an apology.
Newsagents independently need to become the squeaky wheel with issues like this. Put the Alpha out the back (If it’s a crap seller for you) and put something else there that sells.
Take charge of YOUR shop.
This is the root of the problem. I have never been fearful of any supplier. Though Nationwide has me by the short a curlys with the current contract I have no problem with them not supplying product when we negotiate and accept/not accept the new contract or more to the point when I’m told to sign. As for the Alpha, as soon as it was supplied by NDD it went to the shelves with the rest of the sports mags. Without our channel nationwide news would be stuffed. No advertiser would want to run in their paper when it doesn’t have the coverage that Newsagents supply. With the current changes in our industry in some part forced by newspapers such as Nationwide, we will become less reliant on newspapers to sustain our businesses. If I stopped the telegraph in my shop it would not be the end of my business, in fact it would be a catalyst for innovation and a more profitable business. We have to stop looking at ourselves as victims and take control of our own business. Considering the money, time and the chunk of our lives that we have put into our business we owe it to ourselves to show some balls on this issue.
Ever since I have taken Alpha away from the spot and rotated other mags: Popular Science,IPhone Guide, APC Buyer’s Guide, I have sold copies of each of them which are normally not easy to sell.
Today I am trying out Aus House and Garden.
I doubt I would have sold any Alpha as no one seems to be missing it and asking for it.
News Limited have made a mistake by breaking the partnership with Newsagents.
Depending how News collate ALPHA Sales figures (not distribution figures) when distributing via NDD will tell whether their stratedgy will work. It will be a number of months probably until we see any data from those 2 sources.
I agree some maybe fearful, some dont even know, and some will not care about the ALPHA doublecross.
I was pleasantly suprised to hear that some publishes have identified a niche opportunity to increase their sales by using Newsagents prime real estate.
I disagree with Mark if he is suggesting that only Marketing Groups are the only one’s who get the opportunity to put an interested publishers magazine in ALPHA’s place. One in all in or interested Newsagents fill in a compliance form to obtain the benifits would be fair.
Derek, I agree with your disagreement with Mark, I just let it slide.
There are plenty of independent Newsagents that do an excellent job with compliance, etc. Some members of franchisers and marketing groups do let the side down a little with some little things.
All for one and one for all.
Hear, hear, Michael.
The longer we’ve been here, the more we resent the contempt publishers/suppliers (mostly the 3 Ns) have shown us. We’re still pretty new, so I don’t know whether this is mainly because we’re so small, or mainly because that’s how they treat everyone. Either way, the arrogance of their belief that they have a say in how we run our businesses rankles.
I figure that if we have to wait six weeks for information from QNP about OUR customers’ home delivery deals, and how payment structures for those are done up and have changed, then they don’t deserve the time of day from us. We’ve had no home delivery deal/customer update information or statements for the Courier Mail, which are supposed to happen quarterly, apparently, so we have no idea whose deals are current and whose aren’t. They know the losses we’re incurring, but don’t want us to know exactly how much they’re costing us, it seems. I’ve never seen such contempt for simple accountability in my life. To my mind, a six-week delay isn’t just slack. It smacks of stalling.
I figure that if we have to put up with mistakes from a magazine supplier on a weekly basis, then they have no right to even think about suggesting, let alone insisting we do a TAFE retail course to improve OUR business. They need to send their workers to a customer service course as well sending packers/data entry staff for more training. Would you like a side of attitude with that? Oh, the cheek!
I figure that if publishers can play god and tool around with the incomes and cashflows of other businesses with total impunity, and without any semblance of consultation (NDD’s recent offloading of agencies, and News’s Alpha farce) then we really do need to do whatever it takes to ensure our businesses can survive without them, should push really come to shove.
Ba-a-a-a no more.
Y&G,
Are you north or south metro Brisbane or rural?
Near border, Brett. Oh, and I haven’t forgotten the offer of a convo, either. I have your details, so will get around to it..
Y&G, I’m near the border too 70k’s away, I’m happy to drop in for a chat, trade some tips.
Brett, ever since you gave me the offer of coming up for a chin wag I haven’t been to Brisbane!
Cool.
We’re only about 3 k from the border, if that’s not too big a clue LOL
All welcome.
Goondiwindi, I got it LOL. When I go down put the GCB poster upside down so I know it’s your shop.
Haaaa
I’m ok for Mark to pass on contact details.
My point about the marketing group relates to compliance. Suppliers want to know if a request will be acted upon and only a group with compliance mechanisms can achieve this. They don’t want to have to negotiate directly with 1,000s of individuals.
And there lies the point you are all individuals.
Mark, I don’t get what you’re saying.
Can you start with explaining what the actual offer is from the unidentified publisher?
It would be nice to know a little more regarding an offer or an interest.
Mark- I absolutely understand what you say regarding it would be easier to deal with Marketing Groups, they could wrap up x amount of Newsagents in a matter of days if offer was accepted.
If that is the way it would be done then that would fragment the industry. The publisher should encourage all to participate whether you belong to a marketing group or not as you would then have another ALPHA on your hands as I would boycott that magazine/s that is being offered to some at a more competative rate than others.
An interesting debate.
Michael, It’s not my place to announce on behalf of others. I have been told of pitches but do not have permission to release details.
Well, you’ve announced an offer yet not said what it is.
It would have been better to have written the initial post without the distractions.
Anyway it’s another day.
Y&G, no need for Mark to do that. I’ll try to sneak down this week.
clint is a top fella
Mark
Refering to a good recent post.
http://www.newsagencyblog.com.au/2009/04/15/special-interest-magazines-suffer.html
I too have a passion for a cohesive channel, but am dissapointed how on one hand you want a cohesive channel but on the other you suggest only Marketing Groups should gain from prospective publishers pitching for the space where ALPHA once was.
To suggest that being compliant due to being in a Marketing Group is pushing one’s own barrow.
I hope I am wrong and if this is the position that you stand by it goes against everything you have said in the past about “one in all in” re:Universal etc
Derek
Derek,
I have not suggested marketing groups should gain. I have said that marketing groups would be the best channel to approach – for compliance mechanisms are necessary.
If a publisher can get compliance by going direct to all newsagents then by all means do that.
The challenge is one of compliance – a challenge every supplier complains about.
Mark,
What do you mean by compliance? That we put the mag in a certain position in store?
I haven’t seen in the past when a magazine publisher has requested something and the Newsagent hasn’t complied.
From the publishers point of view it is far easier and more cost effective to go to the groups first. This happens in the grocery industry.
Suppliers who deal with Metcash will often go to the groups (Drakes, Ritchies, Foodworks) and submit deals to them to “knock off” a large number of stores in one hit. The mum and dad IGA store may miss out as it is too hard and expensive to service the individuals.
If I were the publisher I would be talking to the marketinng groups only. In the absence of a decent industry body this would be the only way of looking at it.
Mark & Nial
We are all entilted to a view and I am not disagreeing with it and it would be easier for the publisher to grab a huge slice of the pie with very little hassle if this opportunity does get the nod.
With the technology availiable the publisher can give all Newsagents the same deal or if you like an opportunity to be a part of it. The Onus is on every other Newsagent apart from Marketing groups to be part of it.
All the publisher would have to do is to provide a form to download from their website or provide a email address to register for this opportunity. That is all I am saying, their are alternative ways other than being part of a Marketing Group.
I also understand that this opportunity would encourage people to become part of a Marketing Group. But all concerned must understand not all can for a variety of reasons.
I hope this clarifies where I am coming from. I cannot explain it any other way and maybe someone else may have a comment.
Derek
Derek,
Yes, marketing groups are not for everyone. I understand that.
My original post was not intended to be a push for marketing groups.