SMH.COM.AU is reporting that some newsagents are refusing to sell the new MyZone transport tickets due to the poor commission.
State governments around Australia have presided over a considerable decline in commission paid to retailers selling tickets on their behalf over the last five years.
While the governments hide behind plenty of excuses, the reality is that they control the strategy which has seen retailers, many of whom are newsagents, lose considerable revenue.
I remember discussing the expected impact of transport ticket moves with the then NSW Minister for Small Business in 2004 and I walked away feeling that he didn’t get it. He saw that the need for the State Government to cut costs awas more important than newsagents making a living wage. He also said that his government supported small business. Well, on this issue, no.
Newsagents are well placed to support transport tickets because of location and operating hours. It is unreasonable to cut out commission while allowing private operators and other stakeholders to increase their earnings. Our operating costs have gone up too.
Other newsagent suppliers need to take on board issues like this when considering their position. Over the last five years, newsagent margins have been trimmed across a variety of categories and while each trim may be relatively small, they add to a considerable impact in these small businesses.
We don’t have a track record of fighting back and this is why those who have trimmed margins know they can get away with it.
If I were in NSW, I’d be leveraging the traffic in my newsagency and publishing information on how the MyZone pricing hurts my business, my employees and the community nearby. I’d make a pitch for fairness from the state government in the hope that the local member notices and engages in something more than hot air.
I’d connect with other newsagents and take a stand to draw attention to the knock-on impact of the margin cut. It is important to show the comminity-wide effect of changes like this. It is not just about how much money we make in our businesses.
here we go again we have just had 1 staff member spend the last 2 hours sat reloading the computer this morning was another 1.5 hrs making sure all was ok to start etc I agree with Marks coments but historically when has more than a handful of newsagents been able to agree on anything let alone throwing the tickets out the door NSW govt is a complete basket case they cannot even get a major road open after a crash under 9 hrs need we say more than what happened last week and will continue to occur until there is a change in govt beyond help and hopeless in the extreme
we are tired of being a shop front for the NSW govt 2.5% is completely indefensible and the govt knows it they continue to get away with it for as long as they can the cost alone to administer and control this paper ticket trail is completely unprofitable the ministers up sell would you like fries with that bus ticket is complete BS they are in transport mode not buying mode although the public are sympathetic to newsagents 2.5% commission in the end they just want their ticket to get to work on time
With the release of Myki (when ever that might happen?) we Vic agents will drop one percent in commission and even taking on board the quarterly bonus, we will still make about $800 less a year. It is another small decline in our commission along with all the others. It adds up. On top of that, the Vic Govt made BIG people of themselves by not increasing the price of Metcards this year because of the supposed into of Myki, well thanks for nothing, my landlord, electricity, rates etcf didn’t reamin the same
I was very keen to get on board with this new myzone scheme.
the (un-maned)station in my town (80m away) has a ticket machine that only takes coins, and there are only 3 fares (non-conession) under $10 from here.
i was very excited to sell something that would perhaops promote other sales, not just be asked for change for the machine early in the morning.
after explaining the complicated myzone system, the sales kid told me of the 2.5% and COD trading terms….. i dropped it like hot one.
perhaps it system will colapse with lack of interest.
p
Politicians are responsible for these moves. The best place to make them accountable is at the ballot box.
mark,
do you think schemes like mnyzone, go past an elected officals desk?
i would have thought the heads of the department would be authorised to make these kindof decisions?
im only guessing.
p
Now you know why Emerson did not go ahead with the unfair contracts for small business.
well the post office near us is selling bus tickets..rumour is at a MUCH higher commission..surprised NO. Stick your bus tickets !!
we are 1 of the biggest bus ticket seller here in eastern suburb. when they reduced our comm. they came and asked me to sign new contract or otherwise will give my business away. They are just pirates!
Michael,
That’s disgusting and if you have proof of this you should send it to the ACCC. for it is predatory pricing highly illegal