Home' The Channel Magazine : National Newsagent September 2012 Contents NEWS
and not even breaking even. However, 24
years of having customers coming in to pay
their newspaper account and buying a few
other items when they were in the store, had
me very worried about stopping.
We have maybe lost a few of these
customers now since stopping distribution
but have maintained a lot of them. The
business has benefitted in many more areas
though and my health has improved from
not having that stress and this has allowed
me to focus more on the business and make
When I removed the numbers for
distribution I started to get a much clearer
picture of the profitability of the retail side
of the business and the areas we could
We have now downsized our retail staff
and not having distribution has allowed us
to go away on some buying trips. This has
enabled us to buy smarter, to negotiate
better deals and to diversify into new
products. We have improved our cash flow
management with weekly accounts from our
We have concentrated on improving our
core newsagent categories like stationery,
cards, lotteries and magazines through
improved merchandising. We have grown
our magazine sales considerably and are
managing this category more professionally
now that I am less tired. In particular
developing the growing market for niche
titles and we have improved service to our
customers with special interests.
Improving the training of our staff has
also been a key focus and we have now been
able to delegate more responsibilities to
them, which has improved their ownership
of how we develop the business and is
improving our business culture.
Leon Cooper – Bellerive Newsagency, Tas
Whilst News Limited and state associations
will be providing step by step guides on how
to determine the worth of a distribution
business and the possibilities for merging
with others or focusing on retail-only,
newsagents in Western Australia and South
Australia have been operating separate
distribution system for many years.
Whilst the new entities required by the
T2020 process will be singular, here is some
information about how things operate in
WANA CEO Neville Roediger advised
his members of the changes and
explained that there would be no changes
in Western Australia until later, however,
through all the discussions it has been
acknowledged by News that for any
changes to be successful in Western
Australia, the cooperation of The West
Australian is critical and that News will
seek to cooperate with WA Newspapers to
affect any change.
“It would be unrealistic not to expect
changes to the size of territories in Perth,
however it will most likely be driven by the
West Australian in cooperation with News
Ltd; WANA is represented on the advisory
committee and continues to represent its
members in this matter,” Neville said.
• The WA newsagency model is
characterised by a high degree of
specialisation between retail and
distribution, particularly in metro Perth
and in the larger regional centres. In the
smaller country towns they are typically
combined newsagencies that provide both
retail and distribution services.
• Distribution newsagents are grouped
together in depots across the city, 30
depots housing 120 newsagents, each
approximately four or five agents. Each
newsagent has his or her own space,
staff, and rolling machine and distribution
• The delivery newsagents distribute all the
newspapers within their territory. Where
significant deliveries are involved there
are direct drops provided by the publisher.
• Distribution newsagents have direct
accounts with the magazine distributors
and deliver to subagents, which are
generally delis, independent P&C’s and
• Distribution trends: over the last five
to eight years there has been a trend
among some delivery-only newsagents
to expand through acquiring additional
territories. These acquisitions have been
made through distress sales or through
the publisher resuming territories and
allocating them to approved operators.
Sales of distribution businesses have
been very ‘thin’ for some time due to
Distributors have been walking away from
magazine distribution as a result of the
distributors direct approach.
• Retail outlets are subagents for
all newspapers, but have direct
supply contracts with the magazine
• Newspapers are regarded as a loss
leader at best; retailers are now more
dependent on the traffic coming from
lottery players. Newspapers are losing
prominence in retail newsagencies,
particularly as outlets selling
newspapers have proliferated.
• The better retailers are now focusing on
higher margin opportunities, reducing
their magazine footprint, locating
newspapers down the back of the store
and introducing new products into their
• Country based newsagents have been
‘walking away’ from home delivery
in the smaller country towns due to
costs; some have managed to retain the
distribution to subagents.
(by Colin Shipton, ANF–SA)
Distribution newsagents are grouped
together in depots across the city. There
are 10 depots housing 80 newsagents,
approximately 6-10 per depot. Each
newsagent has their own space, staff, and
A number of newsagents have formed
partnerships to cover specific areas within
Adelaide which was seen as unprofitable
because of the kilometres travelled
compared to the papers thrown. News Ltd
has taken on territories on as newsagents
handed them back and they have now been
offered to a group of four or five newsagents
who deliver within this territory. This group
have employed a manager to look after this
area of their business.
how does the depot system work in SA and WA?
Newly created advertising space
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Cleanliness – no oil or mess
High Productivity – minimise labour costs
Presentation – flat, easy to open and readable.
Additional revenue through advertising
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$11,895 + GST RRP Joyner X Series II
in flat wrap technology
The latest Japanese flat wrapping
technology allows newspapers and
magazines to be delivered to residential
or commercial properties in a professional
enviro friendly bag that is far
superior to the current rolled newspapers
being home delivered.
No more throwing of 2 articles for
one publication eg Weekend SMH or
Saturday Melbourne Age.
Saving on fuel & wage costs
which are the two biggest killers of
delivery margins wihtin the
Newsagent Delivery Industry.
You can now wrap a newspaper totally flat and
display advertising on the plastic.
There are no working parts to oil/ lube.
The machine will wrap a Weekend edition of
The Melb Age/ SMH/ Saturday
Courier Mail in one piece.
National Newsagent September 2012
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