Home' The Channel Magazine : July 2011 Contents National Newsagent July 2011
NO NETWORK, NO...
It is all very well for Network Services
to say it is standard practice to re-
introduce a magazine title to stores after
six months even if the newsagent has
requested it be deleted.
It is practices like this from Network
that shows they are clearly out of touch
with the life of a newsagent. Please let
me explain why:
I pay $215,000 in rent per annum. With
30% floor space dedicated to magazines
and approx 1000 pockets. Therefore I am
paying $1.24 rent per week per pocket.
For the period of 18 months up to the
end of Sept 2010, I sold 12 copies of The
Economist. At 25% margin ex GST I made
$30 in Gross Profit, for a rental cost of
$96.72. So before you factor in wages to
put out, pull off, return and send back,
I’m down $66.72. Also in that time I lost
copies to theft regularly @ $8.25 per cost.
If Network’s approach is to reintroduce
products after six months then this has to
stop. We do not have an unlimited amount
of space and they are introducing new
I’ve been a newsagent now for seven
years, so with the category declining at
5% per annum I’m selling 35–40% less in
the same floor space I was seven years
ago. In that time my rent has jumped from
$165 to $215K. Magazines were 45% of my
gross sales back then and 28% today.
It’s time my space for magazines
reflected the return on the investment. I
am planning to cut magazines from 1000
pockets to 750 pockets. How do I do this
when Network keep reintroducing lines
which are not profitable?
I ran an exercise over the weekend on
Network magazines for the 10 months
1/7/10 to 30/4/11. In this time I sold 744
different titles, only 92 were cash flow
positive if you allocate rent against a
pocket. There were 499 titles that sold
less than 10 copies over the 10 months, ie
less than one copy per month. Add 1600
titles from GG and make them fit into
1000 pockets! The magazine distributors
are strangling the life out of our industry.
Seriously, it may be time to consider
becoming a subagent and hand picking
those lines that are profitable or getting
out of Network magazines all together.
Bill Wareham, Tear Tree Plaza
THANKS FOR THE FEEDBACK
Fairwork is targeting small business
to ensure they understand and comply
with the new Fairwork legislation. Some
businesses have received large fines for
deliberately underpaying staff. However,
if your paperwork is in order there is
nothing to worry about as Philip and
Leoni Jenner from Port Mall Newsagency,
SA found out.
Philip Jenner explains the process:
We received a visit from Fair Work
Australia representatives recently to
advise we had been selected for an audit.
Fairwork rang us in the first instance to
advise us they would be visiting us in early
May (about four week’s notice).
A follow up letter was sent out with a form
to complete listing all of our employees,
ages and their current rates of pay.
We were also required to provide copies
of their pay slips and time books for a two
week period in January.
Fairwork Representatives then arrived
without an appointment in early May and
by having everything ready for them the
process was very simple and completed
within five minutes.
By being prepared for the visit we found it
Understanding spam and
why some emails never get
In formatting the ANF News or any
e-newsletter, there are certain words that
are picked up by spam filters, viewed with
suspicion and cause the newsletter to be
Lotteries, win, tobacco, drug,
publisher, security, MasterCard and Visa,
free and special, are just some of the
words that many spam filters reject.
In ANF News, it is difficult to avoid
the words such as tobacco, publishers,
security, guarantee, free, TV or special
To ensure you receive email
newsletters such as ANF News you
need to check your junk mail and advise
your security filter that emails from the
accepted domain and email address
(@anf.net.au) are “allowed” . T h is will
ensure that ANF News will get through to
your inbox and provide up to the minute
Best letter wins a beautiful Parker pen
Send your letters to
email@example.com or fax to (02) 8425 9699
The net return from magazines is something all newsagents are considering and Bill has
done his sums. Congratulations to Bill Wareham, this month’s winner of a gorgeous
Links Archive June 2011 August 2011 Navigation Previous Page Next Page