atans1

SPH’s secret sales team

In Media on 19/04/2016 at 2:45 pm

Last week when I read about SPH’s dismal results*, I remembered a recent incident of how a member of ST’s secret sales team pleaded “breaking rice bowl” to dissuade a cancellation of ST subscription and delivery.

When my 91-yr old  mum found out from the newspaper delivery man that she had to pay $6 more for ST, she asked me to cancel the service. I was more than happy because years ago I had suggested stopping subscribing to ST.

I called the vendor and said “Stop from next month”. He annoyed me by telling me that the Chinese newspaper was subsidised (*0 cents and not $1). I said we never took the Chinese paper.

The next day my mum told me that the vendor had called her and asked her not to cancel. He said she was breaking his rice bowl. But as she refused to pay $36, he agreed to deliver only from Mondays to Fridays, to keep the price down.

My mum also told me that he had denied her assertion that delivering newspapers was a lucrative business (She had heard that when the previous vendor retired, he got $750,000 in coffee money from the new vendor).

I told her, the new guy most probably had to borrow serious money to finance the franchise transfer. And that he needed every subscription.

Whatever, while TOC and TRE are asking for donations, and the Indian is prostituting itself in the search for eyeballs, SPH like Old Man River keeps on rolling. And laughing all the way to the bank.

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*Singapore Press Holdings (SPH) reported a 22 per cent drop in its net profit for the second quarter on Tuesday (Apr 12).

SPH, which owns the Straits Times newspaper, earned S$54.1 million in the three months ending Feb 29, down from S$69.6 million in the same period a year ago.

Singapore’s largest publisher of newspapers and magazines also saw revenue for the quarter fall 4.1 per cent to S$264.2 million, hurt by a 6 per cent drop in media operating revenue to S$190.7 million.

Its property arm fared better, with operating revenue rising just under 1 per cent to S$61.1 million.

CNA

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  1. […] – Thoughts of a Cynical Investor: SPH’s secret sales team […]

  2. I stopped buying ST on a daily basis because they increase the price from 90cts to $1.10

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