PMP announced a $6 million turnaround yesterday for their magazine distribution division, Gordon and Gotch. The good news for newsagents is that Gotch has turned around in profit and service. Through 2004 newsagents were complaining that Gotch seriously oversupplied. In 2005 the company made some tough decisions on titles and improved the service they offer newsagents. That Gotch improved in newsagent eyes and at the bottom line an excellent result. Now, Gotch and all magazine distributors need to review titles they carry and either better compensate newsagents for titles which are cash-flow negative or cut titles which otherwise underperform.
Newsagents are only paid for titles which sell. Unlike magazine distributors they are not paid for stock they display and ultimately return as unsold.