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

Author: Mark Fletcher

Dolly beanie and scarf

dolly_aug08.JPGThe choice for our weekend counter promotion was easy yesterday – the Dolly beanie and scarf make for an ideal impulse offer.

Even though this issue of Dolly has been out for a couple of days, we are expecting the weekend to be very good for this counter promotion – especially since this is when we have a younger demographic in-store. Being able to display the $39.95 gifts makes the offer easy to understand.

Sadly, ACP Magazines won’t recognise this promotion as it’s not part of their standard promotional package.

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magazines

Leveraging the iPhone

iphone_mag.JPGThe geeks were out in force across Australia yesterday chasing down iPhones. I saw one line of at least 100 outside the Optus shop in Elsternwick at 7am.

We sought to tap into the heightened interest and placed the Macworld magazine in the pocket above the Herald Sun. The iPhone on the cover caught some eyes.

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magazines

Does the ANF take 40% of the prepaid commission pie?

I have been shown a document sent to a newsagent considering the Suncorp Eftpos arrangements being promoted by the ANF in the wake of the collapse of Bill Express.

The document I have seen claims the ANF receives 40% of the commission amount paid on prepaid product and that the newsagent receives 60% of the commission amount.

If this is correct, newsagents ought to be shocked that the association acting on their behalf takes 40% of the available commission pie.  It might explain why the ANF is so selective in the eftpos offers it promotes.

While I accept that an association needs revenue to operate, taking 40% of available commission is greed.  What is the ANF offering for its 40% commission?  Newsagents provide the retail outlet, labour, in-store marketing and infrastructure.  The ANF only has access to member communications to sell.

The ANF ought to be transparent with its members about the commissions it makes on the various offers it promotes to newsagents.  Secret commissions leave newsagents ill informed as they consider the best electronic platform for their business.

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Bill Express

Motorlink fuel card drops dead

The Motorlink fuel card, which is part of the OnQ business and through them related to Bill Express, appears to have collapsed yesterday. I have been told that people presenting the card to pay for fuel in a petrol station have the card declined. A call to Caltex says the card is dead. With thousands of cards on issue, I am surprised that there has not been any media coverage of this.  Motorlink is the fuel card previously recommended by the ANF.

Motorlink Systems Pty Ltd has one shareholder – On Q Company Pty Ltd.

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Bill Express

The ANF and Bill Express legal action

I wonder if the ANF got legal advice before it published its advice to members yesterday about legal action related to Bill Express.  It has been suggested to me that the ANF published what it did in an effort to hinder the Class Action commenced by a group of NSW newsagents against the ANF, Bill Express and Technology Business.

The actions of the ANF on the Bill Express matter demonstrate that this is not an association but a commercial entity protecting its commercial interests ahead of the needs of member newsagents.

In several private and public communications people representing the organisation have been loose with facts.

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Bill Express

Journalists need to dig deeper on Bill Express

The story which needs to be written about Bill Express is one about how an industry association sold its soul, cost its members tens of millions of dollars and walked away with a nice profit, only to sell its soul to the next in line.

Journalists need to be wary of the statements being made by the Australian Newsagents’ Federation about Bill Express. On this matter, the ANF is not acting as an association representing its members, it is acting as a commercial partner of several companies involved.

In 2003, the ANF entered into a commercial Heads of Agreement with Bill Express subsidiary Dialtime Pty Ltd. In doing this, it rejected an alternative newsagent owned phone recharge and bill payment offer. For the record, I note that I was not on the ANF Board at the time and I had no commercial involvement in either Bill Express or the newsagent owned alternative.

In the 2003 Bill Express / Dialtime agreement, the ANF agreed to promote the Bill Express, Dialtime and eftpos offers “to the exclusion of all other electronic pre-paid and eftpos offers”.

Last year, I approached the ANF about negotiating a better rate for newsagents. The ANF CEO told me that the ANZ offer was the best offer for newsagents. I did not accept that and proceeded to negotiate with several banks. The result was an offer from St.George which was substantially better than the offer from the ANZ.

In 2008, when the 2003 Agreement ended this year, the ANF entered into a commercial agreement around mobile phone recharge and merchant services from Suncorp and St.George banks. The St.George rates achieved by the ANF are the rates I negotiated. I’d note that my work on the St.George rates was pro bono – I did not seek nor am paid any fee for acquiring a new merchant or for transactions processed.

Not surprisingly, following its agreement with St.George and Suncorp, the ANF started talking down the ANZ rates and talking up their new commercial partners.

In today’s Age newspaper, ANF acting CEO (no announcement has been made yet about a change of status) Don MacAskill is quoted:

“A lot of newsagents are in a predicament, wondering do we get an alternative, will the platforms still be operating, ongoing,” said ANF chief executive Don MacAskill.

“We really are trying to keep our members informed of where things are at and, at the same time, still recommending or giving details of alternative service providers to try and fill the gap of some of the things that were originally facilitated by the Bill Express platform.”

This is where journalists need to ask questions. The ANF is not acting on behalf of members, it is acting in the interests of its commercial partners as it has done in the area of mobile recharge / bill payment since 2003. Journalists ought not quote the ANF as a representative body.

Journalists cannot treat the statements from the ANF about Bill Express as statements from an industry association. They are statements from a commercial body which profits from those it talks up. An association wold do what the Queensland Newsagents’ Federation is doing and listing all eftpos offers available to newsagents so newsagents can make their own commercial decisions. The ANF, instead, actively talks down the ANZ and Commonwealth Bank offers.

Some newsagenmts are so incensed at the poor representation by the ANF of member interests that they are resigning their membership.

I am conflicted, as the ANF often points out, because I own eziPass. eziPass is offered free to all newsagents. I do not make anything from transactions. The ANF knows this. eziPass is available free to any newsagent. Indeed, for one day a couple of months ago, the ANF endorsed eziPass in two communications. My conflict is nothing compared to the ANF conflict.

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Bill Express

Marketing tip: use the Bill Express screen

bxp_scr.JPGThe now dark Bill Express advertising screens are a marketing opportunity for newsagents.

While some newsagents have connected them to DVD players and other devices for use in store, I suspect that most newsagents will not venture that far. Given that most of the screens are in excellent highly visible and high traffic locations, here are some in-store marketing uses for the screen which you could consider:

  • Feature a poster or cover display of your Magazine of the Week. Promote a title most customers would not see at the front of the shop.
  • Promote lottery jackpots – OzLotto is $40 million this week. Hopefully it will not go off and next week you’ll have a $50 million jackpot to promote.
  • Invite a local charity to provide a poster to be stuck over the screen for a week or two.
  • Cover the screen with white board material and make your own Specials Board. Be sure to change the specials at least weekly.
  • Put up a poster supporting your a local sports team.
  • Talk to your merchandiser about creating a greeting card display to go over the screen – something around the Kung Fu Panda themed cards and bags from hallmark would work.
  • Create a simple product based display. For example, AFL footy cards are still hot in our newsagency. We could blow up a footy card pack to the size of the screen so it really stands out when people see it.

All of thse ideas are designed to add to the theatre of retail. With the screens up high and in a great position whatever you promote ought to get a good lift as a result of your efforts. Have a crack.

If none of these ideas excite you, go out to the front of the shop and look at your screen and dream up some ideas which will fit your business. Leaving it dark helps no-one, you might as well use the excellent location to your advantage.

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Bill Express

The Bill Express story from the other side

I have had contact with some former employees of Bill Express overnight, adding a very human element from the other side of the crash of the company. The stories are similar – no knowledge of what was happing higher up, outside their direct area of responsibility; the company was in serious trouble months ago; the various investigations will hopefully get to the truth of the collapse.

One caller had some interesting comments to make about the statement from the Administrator yesterday that the Technology Business companies were “unrelated” to Bill Express.

There is considerable anger at the treatment of employees over the last weeks, the stress and the lack of payment of entitlements. I am surprised that this last issue has not received media attention. Maybe it is because they are IT people, it does not run as well as car workers or process workers being sacked without entitlements.

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Bill Express

The newspaper of the future

As industries and communication channels like cable, the Internet, XM radio and even book publishing migrate toward an on-demand, highly targeted model, the future of news media depends on leveraging new trends and opportunities and harnessing new technologies. And today, advanced digital printing technology makes the vision of creating totally variable newspapers a practical reality.

So opens the website promoting the Second Annual Conference on the Individuated Newspaper. The conference was held two weeks ago. The program looks like it would have been fantastic, all about the newspaper of the future. Read what Vin Crosbie had to say at his Digital Deliverance blog about his contribution to the conference – you can read his keynote speech.

Newsagents need to be across the changes around distribution of news. Not to add to our fear but to show us opportunities which we can leverage.

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Media disruption

Making small spinners work

table_spinner.JPGSince we placed the collection of small spinners of frames, magnets, keepsakes and similar items on a table near our front window they have worked better for us. Previously these spinners were a pain in the neck and spread across the card department. Now, they have a home and are easier to shop and maintain. It’s basic retail really. The alternative of one bigger spinner to house them all is no good because then we can’t locate one spinner at the counter or elsewhere for a short time to boost sales.

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Gifts

Bill Express situation gets messier

A fax from the Administrators of Bill Express to newsagents this afternoon has some interesting points:

The Bill Express network/platform has been maintained/supported with the assistance of an unrelated group of companies, the Technology Business group of companies. While the Technology Business companies maybe structured to be unrelated, one only has to look at the ownership and operational structure to see that they are related. Certainly newsagents signing agreements years ago with Bill Express and Technology Business International would have seen the two as related.

The Technology Business Group purport to own the servers/terminals utilised to deliver the Bill Express network/platform. The Administrators are currently investigating this assertion by the TB Group. TB Group’s purported ownership of the operation of the infrastructure restricts Bill Express from accessing the relevant servers and/or terminals. I wonder if this can get messier?

A number of companies in the TB group were placed in Administration and the Administrators of Bill Express were informed that all relevant staff who have the knowledge and skill to effect the Bill Express network/platform were terminated. How can you effect a fire sale when the people who understand and operate the assets are no longer available?

Newsagents are starting to remove Bill Express equipment from under their counters. The Administrators will need to provide advice on what they ought to do with this.

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Bill Express

ANZ clarifies newsagent eftpos terminal offer

The ANZ bank has confirmed the terms of the eftpos terminals provided to Bill Express newsagents today:

  • There is no contract for the first three months.
  • Newsagents do not have an obligation to continue with the terminal after the three months.
  • After the first three months, the monthly fee will be $29.95.
  • The credit card and debit card fees will b those offered under the previous Bill Express arrangement.

The benefit of the ANZ terminal is that newsagents have something which they can use right away while they assess what is right for their business long term.

Maybe now the ANF will back off talking down the ANZ gesture of sending terminals to Bill Express newsagents.

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Bill Express

The ANF and Bill Express due diligence

In a story in The Age today, ANF acting CEO Don MacAskill is quoted as saying

“People have criticised our organisation for the due diligence that was conducted on Bill Express, but at the end of the day, to put this in perspective, Telstra did due diligence on Bill Express, Optus did due diligence … Vodafone did due diligence,” he said.

“Now if they all thought that they were a worthy credit risk, I think it’s pretty safe to say that the ANF wouldn’t have been too off the mark in thinking it was a worthwhile risk. They definitely had the resources to do a hell of a lot better due diligence.”

MacAskill, in a communication to ANF members, said the ANF had not seen the agreements newsagents signed with Bill Express and that there were various forms of these.

In other communication he has claimed that the ANF did conduct due diligence and that this was undertaken by ANF lawyers Fisher Jeffries.

I joined the ANF Board in December 2003 and resigned in December 2004. The Bill Express decision was made by the ANF Board at its February 26/27 2003 meeting. When I joined the Board, I was provided Board papers for the year prior. I cannot see any evidence of due diligence being conducted by the ANF on the commercial relationship proposed between newsagents and Bill Express and associated businesses. The only due diligence I can see relates to the heads of agreement between the ANF and Bill Express.

On May 30 this year I wrote to the Acting CEO of the ANF expressing concern at public statements made by the ANF about Bill Express and how they conflict with what I knew about ANF decisions and actions in relation to Bill Express. As I noted in that correspondence, newsagents need to know the truth no matter how unpleasant.

Associations, their Directors and employees ought to be prepared to throw themselves in front of a bus for their members. Members must come first. I hope that one day, in an appropriate forum, newsagents will be able to access sufficient facts to determine if their national association put the needs of newsagents first.

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Uncategorized

Intralot ticket selfcheck

ilot_selfcheck.JPGThe device on the right side of the photo is a self check reader for Intralot tickets. This is provided as part of the Intralot solution. Customers can easily check if their instant scratch or other ticket is a winner. Our experience is that while some customers prefer you to check their ticket, others are happy with the self service option. It’s a good change.

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Lotteries

More Bill Express companies in trouble

Not surprisingly, more companies in the Bill Express stable had administrators appointed yesterday.  Pod TV Pty Ltd, Xip media Pty Ltd, both companies associated with the much lauded in-store advertising screens, both had administrators appointed yesterday.

On April 28, Swish Group (ASX code – SWG) announced a deal to take over management of the Bill Express in-store advertising screeens.  The ASX announcement specifically names Bill express Limited subsidiary Xip media Pty Ltd. Curiously, no announcement about this relationship has been made since by SWG to the ASX and newsagents have not heard anything from SWG.  In February, Bill Express withdrew the $210 a month it was paying newsagents to compensate for the advertising they were running on the in-store screens.

Mobile EFT Pty Ltd, Mobile EFT Plus Pty Ltd and Cheque2Cash Pty Ltd also had administrators appointed yesterday.  These are also companies in the Bill Express stable.

Mi-Systems Pty Ltd, Technology Business Holdings Pty Ltd and Technology Business Systems Pty Ltd appear to be unaffected at the moment by the troubles besetting their associated businesses.  As I blogged on June 28, Technology Business Holdings is key to the technology business tree.  This company, like so many in the Bill Express mix, appears to be controlled by Sandro di Donato.

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Bill Express

Advice on Bill Express

We faxed two pages of advice to newsagents yesterday answering questions about the wash up of Bill Express entering administration.

This advice addresses the most common questions we have been asked in hundreds of calls over the last two days.  Newsagents with more questions are welcome to call on 03 9524 8000 or on 0418 321 338.

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Bill Express

Two more Bill Express companies appoint administrators

Express Payroll Solutions Pty Ltd and Technology Call Centre Pty Ltd had administrators appointed yesterday.  Both employed people who provided services to Bill Express.  As I blogged yesterday, my understanding is that employees were let go without being paid entitlements including salary payments for time worked this week.

Regardless of what we newsagents think of Bill Express and the situation they have left for newsagents, employees losing their jobs without entitlements means tough times for some families.

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Bill Express

Promoting Care and Friendship month

dsc03176.JPGYears ago, at the urging or Terry Augustine from Browns Plains, newsXpress developed the Care and Friendship promotion.  As the group has grown so has the promotion.  This year, Hallmark had thrown considerable support behind what is know known as Care and Friendship month.   The result is co-branded marketing collateral and in-store support in the from of a prize of a giant Forever Friends plush bear.

Beyond the commercial benefits for newsXpress members of the Care and Friendship season is the opportunity to encourage people to thank those who may be forgotten from time to time – teachers, friends, neighbours, colleagues … people important us who we forget to thank.

Care and Friendship month reminds people why card giving is important.

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Greeting Cards

Instant lottery sales up 40%

scratch_il.JPGOur sales of instant lottery tickets are up 40% for the first week of July compared to the same week a year ago.

While the jump may be due to the publicity surrounding the replacement of Tattersalls instant product with Intralot product, the sales growth is higher than I expected – especially given the challenges in displaying the Intralot product in the optimum position for their success.

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Lotteries

Is the ANF telling newsagents to collectively boycott ANZ?

I have been told that an ANF staffer has called some newsagents today and told them to NOT install the eftpos terminals sent by the ANZ bank. This, on the back of ANF email communication to newsagents today advising newsagents to approach the ANZ terminal offer with caution could look to some like a call for a collecive boycott.

For five years the ANF offered robust endorsement of the ANZ eftpos arrangements. Late last year when considerably better rates were available for newsagents elsewhere, the ANF continued its support of the ANZ. Now that now the ANF no longer has a financial relationship tied to the ANZ it is saying the their rates are not competitive.

I would have thought that an association would always recommend what is bets for memebrs rather than what is best for it. It is this pursuit of its oiwn commercail interests over the commercail interests of members which created the problem for the ANF in this Bill Express mess.

As for the possible collective boycott, wise counsel to the ANF would be that they get the loose mouthed staffer to stop telling newsagents to boycott the ANZ.

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Bill Express

Bill Express staff sacked

Most staff working at Bill Express Eaglemont headquarters were terminated today I’m told. The only exceptions were those working on the APN call centre.

The people let go work for service companies associated with Bill Express, companies controlled on paper by Sandro di Donato. It appears they will be treated the same way as the employees of Loyalty Direct as I blogged here in May – no benefits

I’m told that the Liquidator would not promise and salaries or termination benefits and that General Employee Entitlements and Redundancy Scheme (GEERS), information was passed to all staff.

As was done with Loyalty Direct, several key staff are probably going to be offered personal contracts while the company looks at what it can rescue from the mess.

The nature of the technology behind Bill Express that it cannot hold together operationally with the key technical team now let go from the business.

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Bill Express

ANF duds newsagents over Bill Express

The Australian Newsagents’ Federation has let newsagents down with this announcement to the press about Bill Express.  here is some of what the press release says:

Newsagents today are dealing with the fallout of the collapse of Bill Express after news of their decision to enter voluntary administration.

The Bill Express electronic platform provided over 3500 newsagents nationally with the ability to process bill payment, mobile phone recharge, calling cards, prepaid credit cards and other products and services.

Bill Express’ decision to enter voluntary administration means many newsagents may not be able to process bills and phone recharges in the usual way.   …

“While this may have a major financial impact on the newsagent network, newsagents will be working to ensure the effect on the consumer is minimised where possible,” MacAskill said.

The ANF and newsagents have been working together to source alternative EFTPOS facilities with electronic mobile recharge and value added services from other providers.

In the meantime, newsagents nationally are stocking up on physical mobile recharge cards in the event that electronic mobile recharge is not available, although an alternative bill payment platform has yet to be found.

Rather than talking down newsagents, the ANF would have been smarter in talking up the considerable preparations newsagents have undertaken in preparation for Bill Express to go down.   For at least 1,000 of the 3,500 Bill Express newsagents it is business as usual.  Why would the ANF not mention this?

Newsagents have alternative eftpos, mobile phone rehcarge and phonecard supply available now.  the ANF holds back from talking about most arrangements since it does not make any money from them.

The ANF needs to decide if it is to be an association representing members or a commercial player chasing profit.  It is the pursuit of the latter which got it into the Bill Express mess in the first place.

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Bill Express

St.George establishes new line for newsagents

Overwhelmed with calls from newsagents about switching from ANZ merchant services to the St.George arrangements I negotiated, St.George has created a team in the Melbourne office. The new exclusive contact number for our arrangements is 1300 731 723.

Newsagents do not need to be an ANF member to access the rates I have negotiated. The ANF will not make any commission from the arrangement. Nor do I.

The St.George terminal fee is less than half the ANZ fee.

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Bill Express