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Early supply of 2007 calendars sucks cash out of newsagencies

NDD, one of the three magazine distributors supplying magazines to newsagents, has scaled out calendars to the newsagent network. While the calendars have a commission of 35% (usual newsagent commission on magazines is 25%), they have a shelf life of six months. My prediction is that unless different terms are negotiated, such as delayed payment until December 2006, these calendars will be cash-flow negative for newsagents for their entire shelf life. While I do not have the NDD national scale out data, I’d suggest that even a modest scale out to newsagents will suck out in the vicinity of $500,000 from newsagent bank accounts. My store received 10 copies of V8 Utes and Beautes and 29 copies of a Melbourne calendar. Such product without the support of other calendar stock will not sell. We will be returning the stock and not paying the NDD account.

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