Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

It’s hard for retailers to compete with this pitch

Mark Fletcher
February 9th, 2019 · 8 Comments

The front page pitch on the Herald Sun is compelling. $1 for 28 days of weekend delivery and digital access. It is a price that indicates how the publisher views the future of their product. One of my stores serves retirement village customers who like deals like this.

It is interesting seeing this front page pitch in the same week we are asked by a newspaper rep to provide a better location in-store for promoting their product. With their now constant promotion to our customers to ditch retail for home delivery, the requested move will not happen.

8 likes

Category: Newspapers

8 responses so far ↓

  • 1 PAT // Feb 10, 2019 at 8:31 AM

    You had a newspaper rep instore ?
    WOW!

    2 likes

  • 2 Amanda // Feb 10, 2019 at 10:46 AM

    What about the $1 an issue on Woman’s Day and Who magazine’s.

    Its all proof that there is further margin in the product for newsagents that we are not getting.

    I don’t care for the excuses that these are declining products.

    Newsagency associations and marketing groups have all failed to achieve better margins on both magazines and newspapers.

    2 likes

  • 3 Mark Fletcher // Feb 10, 2019 at 11:00 AM

    Amanda, I can only speak for the newsXpress marketing group. You are wrong. For years, it has had commercial relation ships with some publishers that have facilitated financial benefit for members, such as successive years of no membership fee increase while, at the same time, increasing service to members. That is bottom line benefit for those businesses.

    2 likes

  • 4 Amanda // Feb 11, 2019 at 1:18 AM

    So are you saying as a newsXpress member you get more than 25% commission on magazines?

    newsXpress members get more than the standard Retail commission rate on the selling of newspapers?

    1 likes

  • 5 Mark Fletcher // Feb 11, 2019 at 6:36 AM

    Amanda, as with supermarkets, financial benefits can flow in more ways than merely commission. newsXpress members have financially benefited from this.

    It is one thing to sit at the sidelines and demand others do this or that for you and another entirely to actively engage and support this happening.

    0 likes

  • 6 Graeme // Feb 11, 2019 at 8:09 AM

    Amanda,
    Newspapers in hard copy form are falling in circulation, and therefore in advertising revenue. To give newsagents more than they have before publishers would be crazy it would just increase the demise. Going back to the supplier for more is yesterday’s Unionist hand out. Markets are out there, use it to create them, if, unfortunately it can’t be done, shut them down for it’s over.

    0 likes

  • 7 Amanda // Feb 12, 2019 at 7:28 PM

    Mark,
    I made the comment that no extra margin has been achieved.

    0 likes

  • 8 Mark Fletcher // Feb 12, 2019 at 8:17 PM

    Amanda, as supermarket bean counters will tell you, margin can come in multiple forms.

    0 likes

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