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

Year: 2022

How newsXpress is helping newsagents increase card sales

newsXpress has launched a integrated in-store and online cam pain to encourage uplift in card sales in its member newsagency businesses.

At the heart of the campaign is 2 cards designed and printed on quality stock in Melbourne, cards with captions that are not common in the Christmas card mix.

I am not aware of any similar campaign ever and am proud to be part of a team bringing this to life for local small business newsagents.

Here’s a video I shot Sunday explaining the campaign.

Here is some of the kit of digital assets provided to newsXpress members to support this campaign.

This campaign is 100% free for newsXpress members. It’s set to drive terrific commercial and social value.

I am the managing director of newsXpress. While this may look like a sales pitch for the marketing group, it is also a call to action to everyone involved with cards in newsagencies to actively engage in increasing card sales. Putting cards in a pocket is not enough.

Helping people understand the value of a greeting card beyond that moment they receive it, open it and read it is key to what we are trying here. Showing people reasons to give cards beyond the traditional is a factor. Using the card as a means for creating a keepsake for years to come is also key.

The more all of us in card retail engage with these and other ways to broaden the value proposition of cards the more we can expect to sell. It is vital we do this.

Our competitors in the card space, major retailers, are only interested in moving stock. Marketing to them is most likely to be price (discount) related. I don’t see any of them engaged with any ac giving to broaden the appeal of cards, to get people buying more than usual.

This campaign is designed to offer newsXpress stores an exclusive value with a category engaging opportunity at its core.

I appreciate there may be some who make fun of or criticise this campaign. If you hear that, please ask what they are doing to grow card sales, to grow engagement with the card category, to pitch cards in a way that nurtures engagement beyond the first opening of a card.

This campaign has only been live a few days and already the feedback has been terrific.

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Greeting Cards

Good retail sales data from the ABS

Sales data from the ABS indicate good results, and they offer a benchmark against which we can be compared in our retail businesses. This chart using ABS data and from the centre for Future Work is fascinating

Click here to get to the ABS website for more comprehensive data, including an analysis of the percentage of online versus in-store.

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Newsagency management

Fringe conspiracy theory packaged as news on today’s Herald Sun front page

Today’s Herald Sun front page story is a disgrace in my view. Here they are going oxygen to a fringe conspiracy theory about Dan Andrews and ignoring the extraordinary and explosive evidence at the Robodebt Royal Commission last week. The former is political interference and the latter is actual news.

It shames me to play a role is making this trash available.

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Ethics

Things newsagents and any retailer can do to better protect their businesses from an outside cyber attack

What happened to Optus, Medibank and Harcourt in recent weeks could happen to any business. Cyber attacks are on the rise, because data has a value. Understanding the value of data is the key to investment in its security.

My Tower Systems POS software company prepared and published advice to its 3,000+ customer community. I share this advice here as it could be useful to any retailer or business owner.

There are things you can do in your business to better protect it from attack. We put together this advice for our POS software customers and share it here with you. Here is our advice:

Security is important for any business and it is important that you protect your business as best you can while still allowing the business to operate efficiently. This is not just for the security of you business and customer data but to provide protection against malicious attacks such as ransomware. 

Below we will list the things you can do to ensure your computers are as secure as possible.  However, some of these restrictions may not be for suitable for all businesses. You will need to decide what is your best approach while being aware of the risks associated.

Windows Usernames and Passwords

The easiest form of security you can enable is having each computer require a username and password to access it.  The passwords should be changed every couple of months.  A drawback of having usernames and passwords is that you need to ensure that all staff are aware of the passwords so that access is not hampered.

Windows Active Directory via AzureAD or Similar

An option for an additional layer of security (over and above standard windows usernames and passwords) is to implement a domain network where staff logging in are authenticated by a Windows Active Directory service.  This option has a not-insignificant cost associated with it. It also means that you will need to allocate staff individual accounts and they would need to use these to access your system.  Implementation of this may also have setup ramifications for your POS software. 

Remote Desktop

If you are not using Windows Remote Desktop (RDP) this it is highly recommended that you disable this service in Windows.  If you are using this service then ensure you have a very strong password that is updated regularly. The preferred option for RDP is to use this via a VPN however if this is not possible access should be limited to specific IP addresses.   Additionally, when this is used in conjunction with an active directory service, like the one mentioned above, this adds an additional layer of security.

Backups

Our recommendation is to use a cloud backup service that incrementally backs up your entire PC.  Consider adding a cloud backup service to any computer that stores any valuable data, not just your server.  It is imperative that the service you use has both a local and a cloud copy for easy disaster recovery.

Browser Passwords

While saved browser passwords are very helpful, it does open a risk should your PC be compromised.  Our suggestion is to not save passwords, especially for accessing any service that stores sensitive data, like bank login etc.  Consider using a password manager such as LastPass or 1password to help you remember passwords.

Emails

Once of the biggest security risks in your business is email.  Only open attachments and click on links in emails that you are sure are from known senders.  Check email addresses as well as the sender’s name. If it sounds suspicious, it probably is.

People Remote Connecting to your Computer/Network

Be careful about who you let take remote control of your computer, ensure they are from who they say they are.  If you are suspicious, terminate the call and call the representative back on a publicly available number.

Don’t use out-of-date Software, Hardware or Operating Systems.

Keep your systems up to date by ensuring you are running versions of software, operating systems and hardware that are still supported by their manufacturers. Make sure that any updates to software, especially Windows security updates, are loaded as soon as possible.  This will ensure that you are not susceptible to any vulnerabilities have been patched by the supplier. 

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Management tip

What did the $160M Powerball jackpot mean for lottery app downloads?

Lottery app downloads are an indicator of interest in the purchase of lottery tickets online rather than over the counter, in-store.

I am grateful to have received this graph via Taylor Collison. It plots app downloads for The Lott, OZ Lotteries, LotteryWest, Lottoland and The Lottery Office.

Almost all achieved significant growth on downloads with The Lott and OzLotteries being the big winners. The Lott accounts for 66% of the 290,000 downloads in the month of October.

It will be interesting to see the percentage of online versus in-store revenue once The Lott publishes those figures. As we have seen, the growth in online far outstrips anything achieved in-store. I would also like to see the volume of returning business from online customers. In fact, that information would be fascinating and useful.

It makes sense that people choose convenience. When you turn on the news and see lines on people snaking out of retail businesses under the pump to deal with jackpot sales it makes sense that people look for an easier way to purchase. And while video and images of lines of people make for stories, the reality is people were served quickly and efficiently, and helpfully with so many first-time and infrequent Powerball shoppers asking questions.

I know many newsagents thrilled with the revenue boost from the recent Powerball $160M jackpot. The boost in commission this far out from Christmas was welcome, and appreciated. Plus, I;’m tole, there was a boost in other sales because of the increase in foot traffic. Of course, the smart retailers with a good in-store configuration and tactical placement of impulse purchase opportunities did best from this.

I remain frustrated that The Lott continues to require so much of retailers in the knowledge of on-going migration from in-store purchase. A fairer approach would provide retailers with more freedom and less requirement to be a billboard for what is a growing online business. This freedom could strengthen these lottery agent businesses and thereby make them more valuable to The Lott into the future.

This is such an easy thing for The Lott to fix. A discrete trial would, I suspect, reveal to them that offering retailers more freedom to use currently The Lott designated space would have no negative impact on lottery ticket sales.

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Ethics

Kudos (for the most part) to Mitsubishi Pencil Australia for their plastic-free initiative

This announcement is good. It offers newsagents stocking these products a good story to share.

That said, it is frustrating that they launched this first with Officeworks – way to show small business retailers how little they mean to you Mitsubishi.

The uni-ball brand is regarded around the world for its high-quality writing instruments.

At Mitsubishi Pencil Australia are now focusing our efforts on the company’s sustainability efforts with the uni-ball range at the forefront of our campaign to reduce the use of single-use plastics.

From November 1st 2022, we will be rolling out single use plastic packaging across our hang-sell range.

Our new packaging marks a change in Australia, moving from plastic blister cards to 100% plastic-free packaging. The new packaging is currently available at Officeworks stores and will begin to be rolled out across all channels from November 2022.

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Ethics

In chasing volume, some suppliers let down their customers

Several suppliers in categories in or nearby our channel are reviewing retail partner arrangements, preferencing retailers who spend more with them as if the annual spend is the most important measure.

In a couple of cases, the local Australian suppliers are being told what to do by large international brands they represent.

None of those involved in this resetting of local retail relationships appear to have considered the impact on the customers, those who love and purchase their brands at retail.

Australian geography as it is sees many retailers serving small communities, dedicated communities.

In one such community, the retailer is delivering brand penetration several times greater than capital city retailers. But since their annual spend on a brand does not reach the bar set by the owners of the brand, they are losing the product.

This is a stupid and ignorant move by the brand. Some of their customers, brought to their brand by the local retailer, may pay more for online (once you add shipping) while others will give up on the brand, in part because of their actions against a local retailer they love.

Too many business owners and leaders chase volume / size because they think size matters.

While size does matter as an overall business performance marker, the best size, or revenue, is that which is spread across many accounts, many retailers. This approach is smart business as it means the supplier is not reliant on a few. But it is harder business to get and manager, with many more accounts.

Predictable business is important in any business. Serving a smaller number of large accounts is not as predictable as serving a large number of smaller accounts. Sadly, some large brands don’t see it that way. I guess leadership team members are not there long enough to see this.

In our retail businesses, we, too, need to manage for efficiency and predictability. This is why I try and have balance in my retail businesses, less reliance on a supplier or product category dominating revenue or GP achieved in the business. This way, one can fall and the business itself is not too harmed.

Any retail business dominated by one supplier is unhealthy at its core, at risk the supplier’s interests are not its interests.

There is too much talk in news outlets and business magazines about business size, too much obsession at business conferences and in industry trade journals about what big business thinks and does and about what successful big business people have done. we need to focus more on our scale, efficiency at our level, at business predictability at our level.

Business size does not matter. What matters is the value the business provides those who rely on it: the owners, employees and customers. In small business retail, our decisions and actions will do more to drive this value than a performance bar set by a supplier.

The suppliers chasing larger accounts, pushing us to reach an arbitrary bar they have set for doing business with them … good luck to them. I don’t trust them enough to believe that achieving today’s bar will satisfy them. I’d rather replace them with two or three smaller suppliers whop are more interested in and appreciative of my business.

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Management tip

Halloween can be as big as you make it

I know of newsagency businesses doing thousands of dollars in Halloween products by going big with home decor items for lavish parties.

Others do well with spider webs, blood and pumpkin buckets.

Others do well with plush.

The thing is, Halloween is a good season for fun in the shop, for events, and for sales.

It very much is one of those seasons that you get from it what you invest, in-store and out of stores. Yes, it’s work, but in the right area the rewards can be terrific.

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newsagency marketing

We saved your business. If it wasn’t for us, you’d have been closed during Covid

This was the pitch put to me aggressively today by a sales person representing a fledgling body that claims to be a national association.

I think they were aggressive because I said no thanks to their email pitch, which came after an unscheduled visit to one of my shops.

The sales person really did say

We saved your business. If it wasn’t for us, you’d have been closed during Covid.

They said it was their lobbying that got newsagents declared essential.

The claim denies the work done by ALNA and many many others, including me. I lobbied state and federal ministers, but I claim no success for newsagents being declared essential. I ultimately think it was the lobbying of the newspaper publishers who had the biggest sway.

While the emotive claim, We saved your business. If it wasn’t for us, you’d have been closed during Covid, was sales bluster, it was offensive and inaccurate. That it was said shames the organisation this person represents.

The sales pitch was not only wilfully ignorant in my opinion, it felt scammy, claims of benefits without evidence supporting the claims. For example, there was a claim about eftpos fees. No details provided. rather, an ignorant request – Please send me a copy of your merchant agreement and I will organise a comparison report for you.

If I was running an association, I’d focus on representative related outcomes, like commission on magazines, newspapers and lotteries. Focussing on commercial deals, like eftpos, is what marketing groups do. As my own group, newsXpress,  has pitched, it introduced least cost routing to the channel years ago and saves an average newsagency thousands a year.

But, hey, this person can pitch what they like I guess. The only explanation I can come up with for their pressure driven approach is if they are on commission. I don’t know how they are paid. I hope commission is not involved as I don’t think associations would be well served being represented by commission sales reps.

How people sell is a reflection on their organisation, as history has shown in the Australian newsagency channel. The issue for me is the cost to people who may be duped along the way.

I am not naming the person or group they represent here because I don’t want them suing me.

I have written this blog post to warn newsagents to ask for evidence when any sales person makes a claim, and only accept claims for which they have and share this evidence, and to know that a claim to have saved the channel through Covid is false and misleading.

On the matter of saving businesses: newsagents saved their businesses during Covid, by serving their local communities.

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Ethics

Is the job market situation easing? No.

We advertised on seek Thursday for new casual retail team members and within 24 hours has received 40 applications with 12 of those being what I’d call excellent.

I’ve not seen those stats for over a year.

So, this experience feels to me like there may be an easing of the labour shortage.

Some factors may have helped, I made it clear the pay rate was above the award, that we would provide a travel allowance and that there was an opportunity to transition to full time.

On the 12 I mentioned above, all have current retail experience, which particularly interested me, and it makes me wonder if it’s the opportunity for above the aware that gets people looking. If so, it’s the free market at work. I do think we are at a moment in time where paying above the award is what we have to do if we want to attract above average people as the award is designed as a benchmark for average, some may even say below average since it’s the minimum one can pay in a designated role.

Now, I say the job market is not easing because people are behaving differently. Three times recently we have hired people at 10% above the award plus a travel reimbursement only to have them not turn up for their shift, and not return calls.

I have several businesses and what I describe above is only occurring in retail.

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Newsagency management

A card could be the best gift for a teacher

Teachers I know joke about the gifts they receive. There’s the cupboard of mugs that say Best Teacher, the apple themed dust collectors and plenty more. Many of the teacher-specific gifts pitched by suppliers are not gifts teachers like.

Teachers I talk to tell me the gift they love above everything else is the card with a note of appreciation and maybe some words about the difference they have made in a young life. One teacher told me this week they keep all the cards they receive and it’s something they love to do – looking back on the cards received over the years.

This is one of the reasons we pitch teacher cards early and consistently. We encourage our customers to share wonderful words teachers will cherish into the future.

You’re unlikely to find teacher cards in supermarket ranges of Christmas cards. It’s a caption of difference for us, something worth pitching.

If we want to grow card sales, shining a light on captions of difference matters.

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Greeting Cards

Strong early Christmas card sales

On the back of early strong boxed Christmas card sales, I am seeing strong early single card sales, and by strong, I mean up on last year and up on pre-Covid 2019.

While the sample dataset is small and confined to capital city situations, it is enough to say that there are shoppers out there buying Christmas cards already.

I mention it this morning to remind newsagents that if you have the stock, put it out now if you can make the room.

Here is what we have done in one of my shops. It’s an integrated display representing two brands, with space allocated 50/50, and delivering a wonderfully diverse range of captions.

Now, of course, the success of Christmas can only be reported once the season is done and we have data for a better sample size – 120 or more stores in a diverse mix of situations. But right now, I’m happy with what I am seeing.

What’s interesting is that we are out early. The supermarkets, post offices and even card shops nearby don’t have Christmas out.

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Greeting Cards

Since some in the newsagency channel love a good rumour …

The 7 year lease of my Westfield Knox shop ended in June last year. I had provided the landlord written notice back in late 2019 that we did not want a new lease as our retail focus had shifted to the high street, with terrific success.

They asked us to stay on for just over a year, and we agreed. The new terms we negotiated were excellent.

That lease extension is up at the end of this year. This coincides with the timing of works relating to the long-planned redevelopment of our end of the centre.

They offered an attractive new lease in a new location, which I declined. As I have written here previously, life on the high street is terrific.

Thursday, we started the process of selling down stock at the Westfield Knox store, so we can have an empty shell by Christmas.

We have enjoyed our time at Knox. It’s been a good centre to be part of. Today, however, our focus has shifted and is elsewhere. We are grateful to be leaving in a planned, structured way, and to have the next couple of months to say goodbye to long term customers.

Given that this was a newsXpress corporate store, I didn’t want or seek to sell the business as there is too much IP embedded in it.

Westfield Knox is an opportunity for a newsagent. The Nextra store that was at Knox closed years ago and transformed to a lottery kiosk. I know the landlord is keen to find a good newsagency operator to serve in the centre.

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Newsagency management

Saturday papers in Melbourne impacted by weather related power outage

News Corp has provided this update to newsagents this morning:

Further to our earlier communication, due to a power outage at our print site caused by severe weather, today’s newspaper deliveries to all areas of Victoria will be delayed by up to 4 hours.

The Weekend Australian will be delivered separately, either this afternoon or tomorrow.

Hazardous conditions exist in many locations. In some cases, delivery may not be possible.

Please let your customers and staff know, and convey our apologies.

The safety of everyone engaged for and on behalf of News Corp Australia in producing and delivering our products is our main priority.

Where relevant, a reminder to always exercise caution whilst performing deliveries and to ensure that you never enter flooded roads.

Should you have any questions, please contact News Retail Support (before 11:30am), your Area Logistics Manager or Area Sales Manager to discuss further.

And an update at 10:23am:

22 October 2022

Update #2: Major delay to today’s paper deliveries

Dear Newsagent/Retailer,

Further to our earlier communication, delivery of the Herald Sun is now well advanced and continuing, where safe to do so.

Due to the significantly later production time,The Weekend Australian will now be delivered tomorrow.

Please let your customers and staff know, and convey our apologies.

Should you have any questions, please contact News Retail Support (before 11:30am), your Area Logistics Manager or Area Sales Manager to discuss further.

Kind Regards,

News Corp Australia

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Newspapers

News Corp advises Vic. newsagents of possible delays Wednesday due to the budget

Sent out yesterday:

21 October 2022,

Federal Budget – delay in newspaper deliveries, Wednesday 26 October editions

Dear Newsagent / Retailer,

News Corp Australia is committed to ensuring readers have comprehensive coverage and analysis of the Federal Budget this Tuesday evening.

Therefore, in order to accommodate the interest of our readers, supplies will be increased where applicable, and editorial deadlines for all major metropolitan mastheads will be pushed back on Tuesday night.

As a result, we anticipate delays of up to 60 minutes for all Wednesday 26 October editions.

We apologise for any inconvenience this causes and thank you in advance for your support.

Kind Regards,

News Corp Australia

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Newspapers

Terrific update from News Corp to SA newsagents on new printing press

Sent out yesterday:

21 October 2022

Adelaide Print Centre – New Printing Press

Dear Newsagent/Retailer,

News Corp Australia is pleased to advise that from next week we enter a new and exciting phase in the production of newspapers at the Adelaide Print Centre.

A multi-million dollar investment has been made to upgrade the printing and publishing assets, ultimately improving the quality and sustainability of our print products into the future.

The current equipment is 30 years old. Ageing equipment can contribute to the frequency of equipment failure, which in-turn can result in delays in getting product to market.

The new Adelaide press and publishing equipment refurbishment will help future-proof our South Australian operations, minimising the risk associated with mechanical and electrical breakdowns.

As with any new machinery, the introduction of this equipment may have some impact on normal operations throughout the commissioning period.

We have put in place contingency measures to reduce possible impacts on delivery arrival times, including adding extra trucks and personnel.

If you have any questions, please contact your usual News Corp Australia representative.

Kind Regards,

News Corp Australia

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Newspapers

Scots College students accused of using counterfeit $50 notes

news.com.au reports:

Scots College students allegedly use counterfeit cash at Double Bay shops
Students from an expensive Sydney private school have landed in hot water after a shop owner accused them of a low act.
Christopher Harris
October 20, 2022 – 7:08AM

Students from one of Sydney’s most expensive private schools have been caught on camera using counterfeit $50 notes in a bid to swindle an eastern suburbs newsagent out of $100.
Despite initially getting away with the alleged crime at Double Bay Newsagency, one student from the $40,000 a year Scots College returned just two days later in a bid to try the same scam again, Daily Telegraph reported.

Video of the original alleged fraud shows three students at the counter of the newsagency as one buys a pen. A second student in a blue shirt asks to swap four $50 notes for two $100 notes and appears nervous as he fumbles in his wallet for the cash.

Nine news also covered the story:

Some mentions of the story label it a prank while others label it a serious crime.

If I had evidence of anyone passing counterfeit currency in my shop, I’d report it to the police with the expectation of a thorough investigation and charges brought based on evidence, regardless of their social connections or the school they attend if they are a student.

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Ethics

Unfortunate coverage by the ABC of the Nine Media decision on newspapers in Tasmania

The ABC yesterday reported that Nine Media will review the decision to stop same day access to print editions of The Australian Financial Review and The Age in Tasmania.

However later on Wednesday, Australian Lottery and Newsagent Association (ALNA) chief executive Ben Kearney said he had been contacted by Nine and told the decision was under review.

He said no timeline was given, and the original intention may still stand.

“They’re going to look at that decision and consider some of the other options that might be available, so certainly from our point of view that’s really good news, that’s what we’ve asked for,” he said.

A couple of points in the ABC article have me scratching my head.

Newsagency co-owner Teresa Sturzaker said her Hobart business would take a financial hit if the original decision went ahead.

“The direct hit is a $25,000 profit per annum, so it’s about $2,000 a month that we’ll lose straight off the top starting,” she told ABC Radio Hobart.

The $2,000 a month figure from The Age and the AFR seems high. It equals $8,000 a month in sales of these 2 titles in one business. If that’s what they do, it’s awesome. But if that’s what they do I’d have thought Nine Media would have a plan B for them. If it’s a distribution business, based on what Nine and News have been doing around Australia it is only a matter of time before it is taken from the newsagent and managed through one of the new publisher distribution partners.

Launceston newsagent Garry Matthews said he would lose a lot more than just newspaper sales.

“Probably across the board, you’re not going to attract your general walk-ins anymore,” he said.

“If they no longer can come in and buy a paper and a cordial … it just means there’s one good reason why they don’t come.”

“It’s pretty sad that a big company like Nine should really care very little about Tasmania.”

Any newsagent running a retail business built and relying on shoppers coming in to buy a paper and a cordial is doomed. Supermarkets and convenience stores own that business. Over the counter purchase of newspapers has been in steady and predictable decline for 15 years. While there is an occasional bump because of a news story, the downward trajectory is set.

Smart newsagents years ago started attracting shoppers for other reasons. In know newsagents in rural and regional Australia, in small towns, that are thriving because they made this shift. Sure, they still sell papers, but they do not rely on them.

The report by the ABC yesterday plays in to an old and out of date narrative that does not serve the newsagency channel well. It makes our businesses look out of date. It does not reflect accurate reporting. The ABC should do better on this.

What people read in The Age and AFR is old news. The opinions that pack their pages are old, too. How people access this has fundamentally changed forever. There is no going back.

What News Corp. and Nine Media are focussed on right now is to achieve the best landing for their businesses, for their shareholders, and that does not include sustaining print forever. If you are a shareholder in either or both you’d want them to maximise profit as that sets your return. If print editions in Tasmania are loss making, you’d want them cut regardless of an emotive story from newsagents.

I get that it will be unpopular to call out the quotes from newsagents as I have done. We owe each other the truth. The truth is, print newspapers are in decline. The publishers have demonstrated this to us through their decisions over the years.

More fool any newsagent who expects the publishers to put newsagent needs ahead of the needs of their shareholders. Publishers have only one legal obligation, and that is to their shareholders. Any emotive argument to the contrary will fail.

My advice to newsagents for years has been and is today:

  • Choose to be a retailer, not an agent. the two are quite different. One makes you the driver of your success while the other tethers you to the success of others.
  • Chase new traffic every day. The more reasons for which you attract shoppers, the more sustainable your business.
  • Convenience is not a future for indie retailers like newsagents. Convenience retail in Australia is owned by big businesses with deep pockets, which which you cannot compete.
  • Don’t be your barrier to success. Too often I see local small business retailers decide against something for their business that will work.
  • Size doesn’t matter. Some of the most successful newsagency businesses in Australia today are small. Size is irrelevant.
  • Location dosen’t matter. Some of the most successful newsagencies in Australia are regional and rural.
  • The shingle doesn’t matter. The newsagency shingle is irrelevant to what you can achieve.
  • Only you can save you. No supplier, no association can save your business, only you can.
  • Make every day your pay day. The value of your business today is what you make today, not what you dream of selling it for in the future. Make every decision on that basis.

There is upside for our channel, plenty of good news. I talked about this recently when sharing the results of a traditional newsagency that I am fortunate to be helping to evolve: https://vimeo.com/756607390 I know of many success stories of growth and profit in our channel, in businesses that sell newspapers, but which to not rely on newspapers.

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Newsagency challenges

Zip costs rise for retailers

Zip sent out a notice to retailers yesterday about a 10% increase in the cost of Zip as a payment option for retailers.

For what it’s worth, I think advising customers the cost of payment platforms like Zip and Afterpay is worthwhile in helping customers understand the costs of business.

I was in a shop a few months ago where a customer making a $300 purchase and using Afterpay to pay was yelling, yes, yelling, as the sales associate demanding a discount. Customers don’t see the cost of business sometimes. In this situation I saw, the customer may have been calmer had they understood their payment method off choice cost the business a decent chunk.

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Newsagency management

Newsagents appear to lose out in another association turf war

Have newsagents not learnt? The failure to create a single national, newsagent controlled, industry association for decades has left newsagents weak and fighting with each other at critical times.

In my opinion, weakness failed newsagents in negotiating terms of government encouraged deregulation with newspaper and magazine publishers in the 1990s, the deconstruction of the newspaper home delivery by newsagents over the last 10 years, lottery commission terms and more.

The disorganisation of newsagents representatively, led, I think, by the egos of a few in leadership roles over the years, but not all in those roles, has seen newsagents weakened through critical changes in and to their businesses.

The latest turf war flows from the reported involvement of The Lottery Corporation (theLott and formerly Tatts etc) and their engagement with the National Retail Association. The Australian has the story:

Newsagents claim they have been covertly signed up to National Retail Association
EXCLUSIVE
ELI GREENBLAT
SENIOR BUSINESS REPORTER
@EliGreenblat

4:35PM OCTOBER 13, 2022
The industry body representing some 4000 newsagents has denounced the National Retail Association for allegedly forcing franchisees to become members.

In an email to its members obtained by The Australian, the Newsagents Association of NSW and the ACT accused the NRA and the ASX-listed Lottery Corporation of trashing individual freedoms and the right to the freedom of association by dragooning newsagents and sellers of lottery tickets into its grouping.

“National Retail Association and … Lottery Corporation demonstrate how they are prepared to ignore your fundamental rights to freedom of association – their arrogance is contemptible,” the email reads. “You shouldn’t have to opt out of something you never asked or gave permission for.”

The Newsagents Association said the NRA would seek to advocate on their behalf but could be compromised in any dispute between Lottery Corp and newsagents as a senior executive of sat on the NRA board as a director.

The article is odd in that it appears to have come from the ‘Newsagent Association’ side but it does not make clear which association. It quotes Ian Booth as the secretary. Booth is secretary of NANA a NSW/ACT association, and he is a Director of Newspower. The article says The industry body representing some 4000 newsagents has denounced the National Retail Association for allegedly forcing franchisees to become members. I don’t think NANA has anything close to 4,000 members, not even 2,000.

ALNA, the national association probably has more, but I suspect not 4,000 newsagent members. There aren’t 4,000 newsagency businesses in Australia.

Then there is NLNA, the Victorian led and run group that claims to be a national association. I doubt they have 4,000 members.

So, a fact check by the journalist at The Australian could have helped create a more useful and, maybe, accurate article.

While the article does reveal a relationship between The Lottery Corporation and the National Retail Association that I think could concern newsagents with lotteries, its usefulness in shining a light on the issue is diminished by an apparent lack of basic fact checking, which brings me to the reason I am writing this.

Unless newsagents sort our their representative mess and bring ALNA, NLNA, VANA, NANA any any other NA under one banner with one national focus they will continue to lose out, and by they, I mean individual newsagents. And in my opinion, ALNA has the national representation runs on the board over many years.

To me, unless I am missing something, this story in The Australian reflects continuation of the failure if strong representation of newsagents, a failure that has let down too many local small business retailers.

Oh, and as for the National Retail Association, I have read what they offer and I don’t see any value whatsoever there for local independent newsagents, I don’t see the need of their current membership mix aligning with those of local independent newsagents. To me, that’s a more interesting story – why try and group newsagents with the NRA group? Who wins?

Footnote: there is a reason newsagents do not engage with their various associations in meaningful numbers.

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Newsagent representation
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