Australian Newsagency Blog

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Has Tatts justified the capital expense they demand you invest in your business?

Mark Fletcher
March 2nd, 2017 · 8 Comments

I have heard from several newsagents this week about intensified pressure they are under to agree to capital expenditure beyond what they can afford and borrow in order to meet the new technology fitout requirements from Tatts.

When two of them asked their Tatts representative for financial justification for additional screens or other demands by the company, the Tatts representative refused to respond.

I understand the fit out obligation. What makes it different this time is the rolling into the fit out obligation the introduction of a new technology platform to market products and that the newsagents funding the platform have no control whatsoever over the content on the platform.

I see the screens requirements as outside the obligations of the agents, beyond the scope of what they signed up for.

At the very least, this should be tested by an independent umpire.

I would love newsagents to respond here about what Tatts has told them to justify the capital expenditure. I ask as I am unaware of any business case from Tatts for the tens of millions of dollars it is forcing small family run businesses to spend promoting the Tatts brand.

Is there any newsagent who has received a business case or a financial justification from Tatts supporting the company’s demands of their business?

The threat from Tatts to take the agency business to another shop in town appears to be the core leverage the company is using. If this is the case, shame on them.

It shocks me that no newsagent has taken Tatts on and forced the company to be held to account for the extraordinary expenditure it is placing on small businesses that can ill-afford capital expenditure that does not deliver a good return.

28 likes

Category: Ethics · Lotteries

8 responses so far ↓

  • 1 Kerrilyn // Mar 2, 2017 at 4:07 PM

    hasn’t anyone read this ? Seriously no comments?

    2 likes

  • 2 Mark Fletcher // Mar 2, 2017 at 6:39 PM

    People are too scared to respond publicly.

    4 likes

  • 3 Dave // Mar 2, 2017 at 10:09 PM

    I think the problem that no one has replied,is due to the fact that we can’t do anything about it,no matter what we say or do

    1 likes

  • 4 Mark Fletcher // Mar 3, 2017 at 7:01 AM

    Dave there is plenty you can do about, plenty. You are not helpless. You are not alone. What it takes is guts. If you have the guts, act. Specifically what you can do will depend on your state.

    0 likes

  • 5 colin // Mar 3, 2017 at 7:01 AM

    This is one for ALNA and NANA to take up on behalf of Newsagents but as always they are showing they have no spine and they are there to take your money for membership and do very little in return

    2 likes

  • 6 Mark Fletcher // Mar 3, 2017 at 7:43 AM

    No basis in fact for this comment Colin. They have done plenty including hosing a well attended forum for newsagents and politicians in Perth a few weeks ago. They have also lobbied politicians and others.

    This fight with Tatts is best conducted by individual newsagents as they have standing in the local tribunal I mentioned. It is a fight those directly affected need to engage.

    0 likes

  • 7 John // Mar 3, 2017 at 2:22 PM

    Mark the issue with having guts to do something is that it drains you mate. I have tried to be lotto best customer in terms of what we have done for them, how we run our business for them, how we comply with everything for them, and all we have done over the years is fork out more and more with no return on investment. Lotto is a good product but the way they treat their retail partners (us the customers) is a disgrace.

    6 likes

  • 8 Mark Fletcher // Mar 3, 2017 at 4:41 PM

    John I think they are betting that it drains you

    2 likes

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