Many newsagents are complaining today about hefty invoices from Gordon and Gotch for magazines. It’s the 30th and What Gotch has supplied today makes it on to the May statement. Newsagents have not ordered this product – it has been scaled out by Gotch. Most of the titles delivered today will have sell through rates of between 35% and 50%. That is, more than half the stock supplied today will be returned by newsagents in a month or two at their cost. Newsagents will get the credit for returned stock a month later.
So, today’s oversupply only serves to suck cash out from newsagent accounts for use by Gotch for a few months.
Not one newsagent competitor (Coles, Woolworths, 7-Eleven, BP, Shell, Mobil) has to put up with this.
The magazine supply model for these titles hurts small business newsagents and those employed by them.