Newspower’s EOFY email — what it says and what it doesn’t
Newspower sent another marketing email early this week, this time with an end-of-financial-year offer. Join before 30 June and receive $1,000 in supplier credit and four weeks of Facebook advertising campaigns.
A number of newsagents forwarded it to me. As with their earlier email, it is tidy and upbeat. And as with that email, I think it is worth reading carefully.
This is my take, my opinion. Do your own research and draw your own conclusions.
The $1,000 offer
The headline is $1,000 credit with a preferred partner supplier. The email adds that this represents “value of over $2,000 profit.”
That profit claim is doing a lot of work. It assumes a margin that is not stated, on product that has not been chosen, in a store whose circumstances are unknown. There is no category example, no margin calculation and no basis given for the figure.
The terms and conditions clarify that stock must be ordered by 30 September 2026. So the credit is tied to a supplier you choose, ordered within a fixed window, for product you then need to sell.
That is not necessarily a bad deal. But “value of over $2,000 profit” is a marketing line, not a financial analysis.
The question I have about the free stock offer is: will it attract new shoppers. To do this, of course, the products need to come from retailers who do not traditionally supply newsagency businesses. This suppliers are very important to newsagents right now.
Four Facebook campaigns
The offer also includes four one-week Facebook advertising campaigns to “maximise sales of the products you choose.”
Facebook advertising can work. The question is always how well. There are no numbers here: no reach estimates, no cost-per-click benchmarks, no examples of what previous campaigns delivered.
A week-long campaign for a single product line is a small window. Whether it moves stock depends heavily on the product, the local market and the creative. None of that is addressed.
The “300 members” figure
The email states that “approximately 300 independently owned newsagents” are already on board.
That is the first time I have seen a member count from Newspower. It is useful context. It also raises a question: how many newsagents have left?
Retention is often a more honest signal of group value than recruitment numbers. The email does not mention it.
The last number I had from research a couple of years ago was 500 retailers. If it’s gone from 500 to 300, that’s a thing.
More customers, more profit, more time
The five “More” promises — customers, profit, information, time, support — are presented as outcomes of joining.
Each one is reasonable as an aspiration. None of them come with a number, a timeframe or a case study. “More customers” through community promotion sounds good. What does it look like in practice? How many members have seen measurable foot traffic increase?
“More time” through social media and business listings management is a genuine value proposition if it is executed well. But the email gives no indication of quality, consistency or how the content is tailored to individual stores.
The dedicated Business Manager
Support through a dedicated Business Manager is listed as a benefit.
This can be valuable. The key questions are how many stores each manager looks after, how often they visit or call, and what their brief is when a store is not performing.
None of that is in the email.
Low-cost joining
“Joining is quick, simple and low-cost” is the close.
What is the cost? The email does not say. For a pitch built around financial benefit, the absence of a membership fee — or at least an indication of one — is a gap worth noting.
The broader point
An EOFY deadline creates urgency. That is the point of it. But urgency is not a reason to skip due diligence.
If you are considering this offer, the questions I would ask are: What is the full membership cost? What are the terms around the supplier credit? Which suppliers are included? What do current members say?
The email is designed to get you to reply with your name and phone number. That is the first step in a sales conversation, not the end of one.
Ask the harder questions before you get there.
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I own newsXpress, a business that competes with Newspower.