The sales decline experienced by capital city newspapers in the latest audit is considerable: The Age, down 15.46%, Sydney Morning Herald 15.23%, The Daily Telegraph down 15.15%, the Herald Sun down 13.19%. Mumbrella has the details.
It’s interesting to see the declines for one newspaper towns: Courier Mail, Advertiser, Mercury – all down significantly.
Part of the problem is delivery times and the lack of respect for news Ltd customers. Customers, a loyal customer base they already have, continually having to put up with late deliveries of the C/Mail. Not a mention of an apology to customers in the paper. We have written an apology to every home delivery customer, on our run, explaining that News Ltd refuse to answer any questions we have asked in relation to continual late deliveries of the Courier Mail to newsagents (6.15am this morning). We have had a great response from our customers, really appreciating the effort that we put in to deliver their papers as we battle with ‘Big Brother’.
Mark,
In my opinion, I think the results reflect the Publishers desire to ensure heavily discounted and give away papers are phased out. In addition I think that recent price increases have had an impact on sale numbers as well.
I say this because when I analyse the results of my own Newsagency’s paper sales, I get a quite different result to the official data.
For example, sales to Sub-agents of M-F papers for the June quarters has the 2013 numbers down by -2.76% compared to the 2012 numbers, significantly less of a drop than the -12.63% that the Advertiser M-F is recorded as having on the adnews web site.
Another interesting stat is when I compare the June 2013 quarter with the Sept 2013 quarter for my Sunday Mail sales, I get a variance in paper sales of -5.5%, (meaning less papers sold in the Sept quarter) which may well be due to the price increase which went through early in the Sept quarter. However, the good news is when I compare the $$$$ sales figures, I get Sept coming out on top by +14.3%.
So whilst I think that the data that gives rise to a headline of “massive decline in newspaper sales” may accurately reflect circulation numbers, I don’t believe it accurately reflects what is happening with sales at the shop front.
So the release of this ‘official data’ does not really hold much dread for me and I remain reasonably relaxed about the short to mid term future, despite being concerned for the drop in advertising revenue for the publishers.
Dennis I agree. we have been seeing this for the last 18 months. It started with Fairfax cleaning up their freebies and deeply discounted subs.
Increased $$ sales in newspapers does not necessarily mean increased gross profit though, we must take into account that our previous 25 % margain has reduced significantly on Fairfax publications in the last 12 months.
Fairfax still supply free newspapers at Newcastle Airport, and at Newcastle Knights home games in the NRL. Thousands of free Sun-Heralds ay Sunday games when patrons are leaving.
I think with the drop in circulation numbers what should concern Distribution Newsagents even more is the nature of the inevitable cost cutting measures by Publishers that will follow.
It is good business practice to maintain a continuous improvement plan and to reduce costs wherever possible. However with the decisions that will be taken, I trust that Publishers will bear in mind the safety of Delivery Drivers.
I am concerned that Publishers will target print operations that could lead to delays in Newsagent depots receiving deliveries in a timely manner.
If such a decision were taken to reduce staffing or run with less presses, then it is likely papers will be available to Distribution Agents at later times. Should this happen, it will mean HD vans on the roads at later times which would increase the risks involved for those drivers.
With any such decisions by publishers other decisions can also be made that will mitigate the risk of late deliveries by choosing to commence printing at earlier times. This can lead to cost savings by Publishers being achieved, but not at the expense of Delivery Drivers.
Perhaps the only thing standing in the way of a win/win situation is whether Editors will adhere to print deadlines more often than not.
I N QLD MOST LOSS COULD BE PUT DOWN TO POOR HOME DEL PLUS NOT GETTING STOCK INTO THE SHOPS ALSO PEOPLE TENDED TO TURN OFF ONCE THE ELECTION WAS CALLED OUR SALES ARE NOW RISEING AGAIN BUT DO I CARE NO MONEY IN THEM PAY ME NEWS HAVE DONE IT TO THEM SELF
They do,try to get more sales ,there is always some promo going ,problem is why run a promo,and cut back supply’s at the same time . It makes no sence at all ,this week qld news are on a mission to force me to use my posters ( which today I caved in and put out the posters up) and the very same week my supply’s are cut back . The very same week they are running a promo to win a generator they cut back supply’s .