A Government out of touch on small business
In 865 Federal Government owned Australia Post shops right now you can see how serious the government is about small business. Leveraging the conflicted positions 100% ownership of Australia Post and controlling legislation which governs Australia Post, the Government has ensured its annual profit windfall. Over the last eleven years this windfall has come at a significant cost to small business including newsagents.
Take the current twelve page Australia Post brochure: page after page of stationery items which, on my reading of the Act, fall outside activity permitted by the Act under which Australia Post operates. My newsagency, like any newsagency competing directly with a Government owned Australia Post retail outlet, fights every day for stationery business. Newsagents have been in stationery since the 1880s. Australia Post has beefed up in this category during the last eleven years.
That Australia Post government owned stores so aggressively and blatantly target independent small business newsagents is evidence of how the Government views small business.
Helen Coonan, the Minister in the government responsible for Australia Post will say that the legislation con trolls Australia Post – as if to wash her hands of the situation. Her Government controls the legislation and can prove its small business credentials by taking the Government owned stores out of this direct competition.
Australia Post has an unfair advantage in that it uses its protected monopoly of postage services to drag traffic to their retail outlets. Newsagents do not have this luxury, it costs us far more to land customers in our stores than Australia Post.
Fairfax published a coupon in The Border Mail, The Illawarra Mercury and The Newcastle Herald last Saturday which, if redeemed at a newsagency the next day, gave the customer the Sun Herald for $1.00. This 44% discount is significant. It is interesting to see a promotion aimed at driving retail sales.
We are trying something completely different at the end of one of magazine aisles with this bear display: cross-promoting the Hallmark Forever Friends range as well as a selection of bear magazines. Both ranges are located some distance from this display and would not be seen by the high traffic passing this display.
Despite the whack from Tattersalls last week for using part of the lottery counter (which I pay for) to promote non Tattersalls we are heavily promoting syndicates in this weekend’s superdraw. In fact, we have been promoting syndicates in the superdraw for weeks. We promote our syndicates on the wall in the photo and elsewhere in the shop – certainly outside the space where lottery products are usually promoted. Our approach to superdraws is structured and consistent. But it’s not enough to protect us against the challenge of construction – 50 stores around us are closed. The centre is going through a major re-vamp. Given that magazine and stationery sales are up, this tells me lottery sales are affected by the construction. Around 50% of lottery sales in our shop are impulse and with traffic dramatically cut the sales dip stands to reason.
I continue to be surprised at the conversations I get into with customers in my newsagency. I was asked yesterday if we had
Go Vegetarian! is a magazine I ought to be critical of if I am consistent with my postings here. The low cover price and sales mean it will be cash-flow negative. However, I like Go Vegetarian! It fits perfectly into the healthy living and eating space we have created between our food and cook book titles and our health and fitness titles.