I’d be curious as to whether any newsagents have evidence off the value of newspaper posters. I ask this with the knowledge that some publisher representatives are visiting newsagents saying that they will lose 2% of the sale price of the newspapers they represent if they do not display newspaper posters.
As Australian publishers have placed their product in so many other retail outlets (coffee shops, fast food outlets, convenience stores, petrol outlets) and increased free distribution (sports events, cinemas, major events) they have shown newsagents that they are not as important as they once were. This has encouraged newsagents to assess how they use their space.
It is often a one-sided relationship between newsagent and publisher. Newsagents have no mechanism for dealing with publishers who act to dilute their retail sales yet publishers, some at least over recent weeks, quickly wave their big stick for not putting up a poster exactly where they demand it be put.
The best way for publishers and newsagents to engage is in dialogue pursuing a common goal – with big sticks checked at the door.
G`day Mark,
we havent displayed posters for nearly 3 years since moving into our new shop as there is no where to display them anyway. Hasnt impacted our sales one little bit.
Cheers
Al
I could count on one hand the number of times we have received posters from HWT and Fairfax in the last 5 years (other than the generic sport or footy card posters) despite numerous phone calls requesting same.
The local daily has never failed to supply posters and, I have to say, they look pretty good in the HWT street stand but our HWT rep fails to see the funny side when I send him photos.
Funnily enough, the posters News insists we display inside the store do diddly squat. However, of far greater value to us are the old rusty cages outside. We actually see prospective customers perusing these before coming in, to decide which paper to buy.
Go figure.
The inherited format of the inside ones significantly restrict our freedom as to how we want our store laid out and they look diabolical, whereas the cages enhance the outside, due to the style of the building we rent.
There are plans to change the format of the indoor posters, which will be quite easy to do while avoiding the bully-boys’ big stick. Just a case of plans coming to fruition in time. Working this out was not difficult, just a convo with the rep (yes, sometimes it’s not a battle) to ascertain exactly what the requirements are, and work from there.
We’ve found customers don’t bother to read signs or posters anyway as a general rule, so we’ve given mag posters the flick completely.
What does annoy me though, is what’s printed on those posters sometimes. Oh so cringe-inducing! Now and then, there’s one that’s so bad that it doesn’t even reach us 😉
posters ? i give them tpo the kindy for paining on thats about all they are good for ,(maybe if there was a bit of colour to them i would give them a go . the poster frames are then used for magazine posters which make the shop look a lot brighter .
if there is a promo with the papers i do use them ,
Haven’t put one up for over 5 years; no-one reads them.
If you don’t put out posters how do you know that if you did you wouldn’t make more sales than you do if you don’t display them?
Posters outside of newsagencies are an eye catcher and historically they have proven apart from spruiking, yes spruiking in the streets “read all about it etc” the maost effective impulse sales for newspapers.
You are newsagents afterall and you do have contracts.
I a cannot understand why somebody bys a newsagency then bags the crap out of the product Thank goodness it is only a few that denigrate the product and therefore the industry
No one is denigrating the product graeme, just the tactics some publishers use to demand we adhere to their rules even though they do not generate the results they claim.
Graeme , just because i don’t put out the paper posters dosn’t mean i have not in the past it just means i find better sales in magazines when i use the paper poster holders . Graeme which newsagency do you own ?? not sure if you do own one this is probally why you do not understand . (not bagging you but if you were in a newsagency you would probally know tjhat you choose what you think is best for your business)
“historically ” things change you cannot live in the past
Graeme , just had a read on your site and apparently you have a whole heap of experiece with newsagencys so i take back the last comment .
Shaun,
That’s okay I am not trying to bag you it’s your choice what you do However we seem to shoot ourselves in the foot on this PUBLIC site by critising our core product too much.
I conduct a buyers seminar once a Month and I often get this website quoted back to me about the decline in newspapers I don’t dispute the decline but when current newsagents say things like ‘They are a small part of my business” and pour their thoughts out in such a brave way on this siteit’s not good as an image for prospective buyers especially when the one “kicking” the newspaper industry sign up again with the publishers for more.
I have an answer now for thaose that say to me the Australian Newsagency Blog says this and says that so Goodwill should be lower.
If that’s what people here are trying to do then you’re going about it in the right way. Goodwill is falling -rapidly, and further derogeratory comments made public when there is no real foundation of truth in
Well, it’s up to the minority that speak out like this.
The Publishers are single minded about their product it’s all they have and they appoint peole to be their agents which is newsagents if you don’t like it I don’t see anyone handing back their contracts and NOT still wanting supply. Anywayif your concerns are well founded (and it’s hard to be posters are an issue, rather than a whinge)then why not formalise your complaint through the Associatin of your choice. Does anyone think for one moment that an airing here is going to change the Publisher’s mind or rather make them feel justified in treating you the way you feel you are being treated?
Graeme,
The majority of content published here is positive.
There is evidence of suppliers, including publishers, changing behaviour as a result of this blog.
Newspapers are not the only products publishers have just as newsagents are not their only channel.
I am glad that the blog is getting prospective newsagents to ask questions. I have felt for sometime that some new newsagents pay too much for their businesses because of ignorance.
As I have written here many times, newspapers are a slowly fading but important part of our business model. Publishers need to respect and reward us as business people. The big stick does not work. That’s what this blog post is about.
Graeme you make some valid points but its hard to not be critical of newspapers especially as a retail only agent. I dedicate the same space to newspapers as any other agent and i work just as hard in doing so as any other agent, for what? a lousy 10% whilst the bloke up the road gets 12-15% just for throwing them in my backdoor. I understand he has the area and therefore the contract to do this for QNP but our local paper wont deliver to me direct either but is happy to do so for any other business they chase (they even supplied a coffee shop next to me with free papers because they advertised with them). I can sell more papers all i need is a direct opportunity to do so. The publishers are whingeing and moaning about drops in numbers but i cant get extra papers when i ask….good business sense…i dont think so. I personally think that agents probaly say that papers are a small part of their business because the supply system has had so many flaws with it that we probaly have given up on trying to increase it in any way and concentrated on areas that we do have control over. As far as being “brave” about putting our thoughts on this blog, i think its been proven that publishers do log onto this blog so maybe one comment from somebody may eventually hit the spot and they will take things on board…hasnt happened yet but why give up?
Cheers
Al
They are paying me 10% to sell papers not enough.Better off with the mag poster in the frame pays better .I think it is time Qld papers paid a better % ,15% week days 18% on the weekend this realy needs to have an ajustment, mail going up ,a bloody cent boy o boy an extra 60 cent a day
Alan Mark and others,
I was just answering the poster question. There are many issues in every industry at the moment and not many answers. Most industires apart from food are very fragmented. Back to posters. Posters are advertising. and frankly not adverising is like winking at the sheila in the dark. You know what your doing she hasn’t a clue.
Publishers do read this blog so do your prospective buyers. It’s a pity that you one has to resort to public places to wash one’s linen and it’s a only a minority view anyway.
Just ask youself when you past a billboard and see a movie advertised (large poster) have you ever thought Gee I must see that or read a review on it? Have you ever looked a display posters in windows advertising products? Have you ever been tempted to buy something that is advertised by poster promotion?
Of course you have everybody has and will continue to do so. Come on it was a simple statement a bit provocative however if thought through the answer was a no brainer.
Yes I agree this blog has done, does do and can still do a lot of good but surely sometimes one must wonder what sort of catch is a fishing question like this, looking for?
Al;l over the World there are posters displayed to advertise products, electronically and otherwise, only this week thought Marks idea of posters in the Centre outside of the newsagency was such a good idea a newsagent wrote in and sked Mark where it got them printed.
We have posters already printed by the publisherfor our use and we have the audacity to question their worth? What double standard is that? When there is no newspaper (and I don’t think that there will ever be a day when there is not)we as newsagents would be vey sorry.
Alan I realise that you get a lousy 12.5% or even 10% however you also kbnow the reason why. They take up bugger all space and they are purchased by many people with added products on a daily basis. If you sell 100 a day at a multiple sale of $10 or $5 per person then you have $500 to $1,000 per day. Every other retilers envy That’s why Coles and Woolies sell them and they only get 12.5% as well.
Fair go I might get peole upset but this is over the top.
Graeme, i want to sell more papers even at a lousy 10%, so when i asked for an extra 50 papers last saturday and got no extras how does that give me incentive to pursue this further??? Not an isolated event either!
Just one more question Graeme, should i give the space to a newspaper poster or give that same space to Ink, Stationary, Magazines, Giftware or even Greeting cards….you know, the product with bigger margin!
i have no problem with posters , as mentioned i use posters all the time ,it just so happenes i prefer the magazine posters or sale posters to the dull looking newspaper ones . there is only so much poster space available
To give a picture of what 2% is in relative terms …
At a 2% decline without posters i calculate we would have to sell approx 1 extra magazine per 185 newspapers (if we made 25% GP) to cover the lost revenue.
We actually make 12.5% so we only have to sell approx 1 extra magazine per 370 newspapers to cover the lost revenue.
The number of newspapers gets significantly bigger if we look at it in terms of ink, cards or giftware.
So as far as the numbers are concerned we are better off replacing the newspaper poster with one for almost any other department.
Graeme stop jumping at shadows in wondering if there is an ulterior motive to the blog post.
I use the material which best serves my business. This sees me use newspaper posters some times and not others.
As I say in the original blog post: The best way for publishers and newsagents to engage is in dialogue pursuing a common goal – with big sticks checked at the door.
Allan,
Your running a business I have had my say What is it that you don’t understand traffic is traffic Maybe the newspaper buyer will by the ink? Check your average sale If you need me to tell you any more than I have stated then maybe you shouls check to see if you should be a newsagent at all.
Jarryd you are trying to do the same thing, just if you will for a moment seeing that you and Allan and Mark believe that you are essentially retailers first and newsagents only as a part of being that retailer, let’s look at what good retail marketers do.
They use the newspapers and milk and whatever the DAILY need is to PULL customers into the store on a regular basis. Not rocket science They use whatever they can Posters do that for you The rest as they say is up to you to do your stuff. If you put posters outside for ink then you may get a few sales why can’t you do both?
Mark your always on abou agendas No I don’t think you have another agenda hidden of otherwise I am just commenting on what you posted on your blog and to some of the answers. I have a very strong opinion about the value of newspapers both as a product and as drawcard to a business. I believe they will be around for longer obviously than you do and I believe wholeheartedly that if we keep promoting them daily then they may be around a bit longer.
I find it incomprhensible that one can call themselves newsagents and not promote the product.
If I were the publisher I would look at my supply agreement through my distributor and enforce that agreement rather than have half a dozen mavericks try tchange the demograpgh of the business.
Jarryd, from your perspective 2% or whatever coverts to not much for you however 2% of total circulation if everyone thought like you would on a daily basis evnttually put the paper out of business.
It really is such a silly question with SOME silly repsonses.
Graeme,
You raised the agenda of the blog post by posing in your comment:
one must wonder what sort of catch is a fishing question like this, looking for?
It was looking for nothing other than a discussion about the big stick approach by some publishers around newspaper posters. You have, once again, sought to make it about other points.
I don’t see anyone questioning the value of newspapers, just the old-school approach. read other posts on the blog and see that I and others happily promote newspapers.
Graeme,
” I have an answer now for those that say to me the Australian Newsagency Blog says this and says that so Goodwill should be lower.
If that’s what people here are trying to do then you’re going about it in the right way. Goodwill is falling -rapidly, and further derogeratory comments made public when there is no real foundation of truth in
Well, it’s up to the minority that speak out like this.”
i say this in a nice way but if you didn’t come back and comment this would have been all over in just 3 0r 4 messages and the “good will” would not be falling so fast . it seems to be your comments that turn it into a big winge fest . Normally i agree with a lot of what you comment about but now you are saying we are damaging the industry for putting our comments on here when you are one of the main contributors on here , dosn’t make much sence to me . To me if someone is looking at buying a newsagency you should let them know about this blog it is one of the best tools out there , personally i have saved thousands of dollars just from reading this blog .
Graeme,
Does it still hold true today as it did yesterday that ROI, Stock turns, and Return per sq metre that newspapers still tick all the right boxes? It seems that some can get carried away with margin rather than dollars so why not promote the hell out of them even if it is only the poster and as bad as those wire poster frames may look from a pure retail perspective they still define a newsagency to the passerby. A bit more difficult to achieve in a shopping centre though.
Yes Graeme that is exactly the point Newspapers give a better per sq metre profit than any other section of the store and I mean PROFIT per sq metre nearly twice as much except for those on 12.5% and they only get more per sq metre than the other sq metres. As well as that you actually get all your money in the bank before you even PAY for them talk about a cash cow it’s great retailing.
As you may be aware we have a company bpanalysis (business performance analysis) that does analysis of different businesses performance ofcourse our specialty is newsagencies however we do other retail and even manufacturing and recently (in the past 3 months we have done 5 performance analysis and in the newsagencies Shopping Centres and Strip without home deliveries, newspapers came up as by the best return on invest as well as the best return on space in any of the stores. This has caused me g to go back over the hundreds on analysis that I have done on space allocation in 20 years and you got it newspapers are number one. Stationery number 2 Cards 3 and magazines in lots of cases run at a loss per sq metere per annum.
These figures are factual and are summarized in a booklet that Newstrade produced “the complete newsagency experience” believe it or not they are still our major draw and we should as you say promote them at every opportunity. Amen.
Graeme and Graeme, I am not disputing the value of newspapers in my blog post. Rather, I am questioning the heavy handed tactics of some publishers.
I know of plenty of newsagents generating excellent returns from newspapers without putting up posters.
The key is that smart retailers are left to be smart rather than adhering to a policy which will not help them drive sales.
Jarryd,
Use a calculator please…
2% of our paper circulation is more closer to $100 per week. Is it really worth it.
Maybe a compromise is better.
newsagencies are overpriced, i am looking to buy an additional one, and the figures that are used are just too rubbery, when compared to normal business valuations there is something like $260 000 difference in valuations, this is a joke as the business model will not stand up, any new owner paying what is being asked cannot make the business work, pure and simple. time we got real on valuations
Thanks once again Graeme for attacking my worth on having an opinion on this site. I am a “NEWSAGENT” but i am also a business man and one thing i have learnt is not to give in to bully tactics which is what indeed raised the issue on this thread in the 1st place. If you think you can run my business better than me then make me an offer!!! Its called putting your money where your big mouth is!!!!
Allan,
You stated that you haven’t displayed posters for 3 years and it hasn’t impacted our sales one little bit.
Your words. My comments are how would you know what your sales would have been had you displayed posters?
If that’s using a big mouth to attack your worthy statement, then you’ve got a problem.
You may by your post be demonstrative in being a newsagent however your statement shows no business sense whatsoever for you can’t possibly calculate in budiness terms your statement? It’s your statement please read it then come back to this group and tell us how you justify it.
Graeme,
You mention in the blog that goodwill for newsagencies is falling rapidly.
Can you tell me what the current p.e. for goodwill is being paid for Sydney metro newsagencies?
Graeme, my newspapers sales are on a steady increase and would sell more if i could get proper supply…as i cant….why would i bother promoting an item that somedays i am sold out of by 11.00 am?(seems like a waste of time promoting something i know is going to sell out anyway) so i guess you are correct…how would i know what my sales COULD have been? I do know that on those days Woolworths paper sales are up because i go and buy theirs from them so my customers have access to them from my store not theirs. At the end of the day Graeme the business sense is this….I CAN SELL IT….I JUST CANT GET THE SUPPLY….hope that clarifies MY situation for YOU!!!
Graeme, with your wealth of knowledge could you calculate for me what i (and QNP) may have lost in sales because of MY incompetence????
Post 32 Allan I understand your frustration and you should take that up with your distributor and as I understand it you are a sub agent therefore you have no contract with the publisher, therefore your beef is with the publisher’s appointed distributor. The blog comment here was/is about publisher treatment. Is this wrong?
Blog 33 Believably immeasurable for you made the statement that it hadn’t effected sales at all-your call.
Graeme, i have a direct relationship with the supplier..i.e. i am responsible for my own quantities….i just cant get them.
Publisher treatment is a two way street and this is exactly how Mark started this thread.
RE: blog 33 i should clarify that at least my sales arent down!
Bob,
Thanks for a fair dinkum question.
Every newagency is different there is more focus on the quality of figures and the ability of the purchaser to achieve those figures than ever before.
Baks are not lending, period, to small business in general however having said that they willlend depending on the asset structure and experience of the purchaser.
We find the listing process demanding for the newsagent for it is totally different from when he/she purchased the business. Bnaks want boxes ticked, some banks lend against the newsagency some do not Westpac DON’T but will lend higher on the housing equation. ANZ – NAB lend on a percentage on the business the CBA are trying and I think may get there.
I am not trying to be a smart arse here. I don’t have a hidden agenda however I have been a newsagent and an active part of this industry for 41 years. I have totally supported newsagents Goodwill (it’s their Super) and will always do so providing their figures stack up. We get top money for well presented businesses for Banks can see the transparency and lend on the ability to repay. Purchasers like to know that thaey are getting what they pay for.
I don’t give a care for anyone that denegrates this industry for it hasn’t changed that much in 60 years.
Try a franchise and pay 8% off your botom line that is $1,600 per week for a $20k per week turnover newsagency.
Banks rank risk 2007-8 Pubs-Pharmacys-Franchises and last newsagents. 2010 it is starting to be different All SME’s are placed under extreme scrutiny. KGB of Business Spectator interviewed business brokers and their current arrangements with banks re small business borrowings last Friday. It confirmed what we have known for some time.
We currently are going to great pains to get a newsagency acceptance performance analysis with the big 4 banks and their subsiduaries. So far so good.
We have achieved such recognition with some Major Shopping Centres on performance analysis of newsagencies. The reports are unbiased and give and actual performance of the business in question.
There is a lot more to be done and unfortunately helping people in trouble in this economic climate is not a paying proposition. Howver the industry is great especially when one compares it with others.
If you want any info on interviews or banking attitudes click on my name and email me and I will forward it to you F.O.C. of course.
Hemi,
I did use a calculator (and checked it twice before submitting my comment).
At $100 per week that is only around $14-15 per day. Which is the equivelant of approx 2.6 magazines. Sell an extra 3 magazines per day and your bottom line is better off.
Allan, I understand your frustration Your pathway is to go to your Association for representation. There are many board members on each Association that are not distribution agents. Or else go direct to the publisher in question.
Marks blog was not abou that it was about Publishers putting the heavy on Agents about displaying posters and threatening a 2% reduction etc for not doing so. As you are not an agent and do not have a contract it really wasn’t aimed at you.
Anyway Allan the beef you have is valid and if you live in NSW or QLD I feel you would get considerable support from these two bodies I am unaware of VIC’s policy but I guess they would be supportive as well.
As an aside IO get 2 papers on subscription delivery Mon to Fri and I purchase 2 papers at a newsagency every day.
One such newsagent sells out of the AFR every morning however the very large IGA supermarket still has 4 left at 6 pm every day.
The newsagent says too bad go and see them. After taklks with them they say who cares for $3.
I do, my ione stop purchase is another paper fot $1 (get the footy update)believe it or not a mars bar or other packet sweet and a mag (the mag once a week) and a Lotto twice a week $50 worth.
The ibnconvenience has caused me to go somewhere else so I can one stop shop.
So you see what one paper sale can do imaginged if I smoked it would be a unit sale of on average $30 per day.
I therefore understand your undersupply problem however that I didn’t know when you posted the original answer to this blog.
If you are in NSW ring Gary Monks or Stan Cousins on 9744 0400 whether you are a member or not re supply problems. Best of luck.
Graeme,
Newsagents already generate good traffic from newspapers. Trying to squeeze a few more drops from the newspaper traffic lemon is crazy when your’ve got plenty of other unsqueezed lemons (ink,magazines, stationery, gifts) just sitting there full of potential.
A good retailer knows that there is no point just having product in the store and not telling people about it. People naturally know we have newspapers. The newspaper offer is small in terms of range relatively the same in all newsagencies. So why give the advertising space to tell consumes what they already know?
We’re already getting the majority of newspaper customers . Why not use the advertising space to tap into new markets (ones that provide oportunity for far more growth than 2%)
I should note that we have not displayed newspaper posters for over 2 years and in that time have managed to increase our newspaper sales by almost double digits year on year.
Bob, I doubt there is an accurate consistent answer given the diversity of businesses.
The key for a buyer is to get to an accurate representation of the business numbers and then to negotiate the price you are prepared to pay.
The key for the seller is to maximise return. The best way to do this is every week in your newsagency. The more you make (bank) the more you will sell your newsagency for.
Unfortunately, some newsagents think that their only payday is when they sell. hence the numbers which are presented sometimes.
Jarryd,
You got your ideas and I have mine this is not the argument. As a sub agent I can understand thta you have not the interest that a full newsagent would have or needs to have for he/she has a contract and this blog was about the publisher and punishment versus the poster display.
I don’t put them up any more as they sell themselves without posters. If you take notice though, the posters are looked at by customers when the papers are sold out – to see what they’ve missed out on.
LOL and even then, they fail to notice the A4 page over top of it saying “Sorry, sold out”..
“Are you sure your sold out”? Comes next…
Graeme and Mark,
Thanks for your comments on goodwill but do you think 3 times earnings is still achievable?
Bob goodwill of three times net earnings is okay as long as the net earnings figure is true.
Bob,
Mark’s comment re 3 times was once a given and now it’s not as easy as that. There are more factors to be taken into than a multiple for price earnings. It would depend on how the price earnings were achieved for starter. The work load of the store and its location plus the productivity of the operation. Valuations are far more difficult than people understand Please phone me so that I can talk in confidence re your particular situation. We also have to bear in mind that the BANKS have a sliding scale of Goodwill depending apon the applicant and the quality of the loan.
Always on the prowl here for business eh Graeme? You are a broker of course you would say that valuations are mroe difficult. You have to earn your money somehow.
Bob, I agree with mark, get the earnings figure right first. Beware of what brokers say – they are working for the seller after all.
David,
You are insulting That comment is lower than low. I have represented many newsagents over many years and we do a due diligence before it goes to market. We are the only ones that do. If it doesn’t stack up we don’t list it. Mty background is Business Analysis before brokerage. Check the website next time before you make foolish and incriminating judgemental statements. I am never “on the prowl for business’ I daverstise direct whether listing or selling. I always have enough to work 7 days a week. What I informed Bob does NOT mean that you can’t get 3 times it just means what it says,I wouldn’t know who Bob is to “prowl him” as you suggest I don’t even know if he is looking or iwhat State he comes from. Would you suggest that I tell everyone what the highest and lowest were for the past 12 months on this site when it’s not my site. I am not peddling my goods here everting I have done for newsagents from enquiries like this is F.O.C.
There are Brokers and There are Brokers just as there are newsagents and there are newsagents.
With due respect Mark is only offering his opinion which is never too far out but he is not a broker does not pretend to be one and I answered a question that Bob asked me-
And there is another sales pitch Graeme. I see a pattern in what your comments. yes you answered Bob’s question – with a sales pitch.
David,
I don’t know wehere your coming from but this site has too much respect for you to denegrate it into a personal slanging match.
You do not even disclose who you are yet I am up for all to see. Hide as you must and sling off as you like but why not answer some of the things that I say with facts Look at any Brokers website, Get a result of past sales for the last 2 years and work out the multiples for yourself It’s all out there No you are your own know everything acting anonymously.
Check it out David, disclose your real identity and prove your accusations OR SHUT UP!