For years my newsagency software company has been working with consortiums of newsagents in several states on various newspaper distribution consolidation models.
While each model is quite different, they all have a common goal at their core – to leverage scale to create a commercially viable newspaper distribution operation.
At one end we have newsagents buying up runs and managing these out of their original premises or a nearby small warehouse. At the other end we have large operations with a mid-size business structure. In between there are several other models.
All look for the retail newsagent to be the shop front of the distribution business, collecting home delivery payments and sometimes managing stops and starts and other customer queries.
Some of these consolidation models have been in existence for close to ten years. Others are just starting now.
While there are some in the channel who want the channel to solve the challenge of consolidation which is now, finally, being brought on in the open by News Limited, I know there are others who have the view that market forces should prevail and the channel should not try take care of those who have not adapted their business models over the years.
I lean toward the more commercial market forces view.
There are newsagents who have invested and through this have created for themselves a commercial advantage. They are entitled to that advantage – just as I am through my software company and the work being done with various consortiums to leverage the consolidated distribution model through software enhancements.
We are in the midst of extraordinary change in our channel. We all must embrace every opportunity for and aspect of change if our respective businesses are to make the most of the opportunities. What we do and the rewards we achieve are part of the free market system.