I often write here that the magazine supply model is broken. Below are selected excerpts from an email from a newsagent explaining their specific situation:
We are reasonably new to the industry (2 years tomorrow) and are having cash flow issues already.
As you suggested we contacted each of the distributors and requested a supply allocation order.
We adjusted this file extensively and faxed it back, we have not had any reply from any of them.I read on your blog that you cut the bottom 200 titles from your shop. I am interested in how you do this when I cant get the majors to accept my adjusted allocation supply model?
(Or whatever they want to call it).One distributor has advised us that they haven’t APPROVED it yet?? (But it is our cash-flow???). Another distributor says they have done something for us but we don’t see it working. Another distributor is ignoring us.
Mark, we are trying to learn as quickly as we can and love the newsagency channel.
Can you offer any advice? Are we talking to the wrong trees? If we can’t get them to cut adult mags that we have sold 1 copy of in 2 years, how will we get them to accept a cut of the underperforming 200!Or are we getting the run around because they assume we are new(ish) and they want us to stay in the dark?
The magazines are killing us and taking our cash so that some weeks we have to delay paying staff until we bank the following day!
… but whilst everyone sympathises with the oversupply issues of newsagents no-one is actually there for new newsagents to show them the ropes and who to talk to – how to get around the system .
This is a common email from a newsagent. It reeks of despair. Only newsagents can solve the problem. It is their cash, their real-estate and their labour at risk in supporting the magazine supply model. Magazine distributors have their own challenges as do publishers. They must look out for themselves. So should newsagents.
To the publishers who write and say that they cold not afford to publish their titles if newsagents did not maintain the current supply model, it’s not our problem. Newsagents cannot afford any longer to support small titles. real-estate is expensive and it is unreasonable to ask newsagent to invest in small and new titles as is the case now. Look at Cosmos, my newsagency invested hundreds of dollars of cash in its launch and now it’s more about the online presence. Launches of such fringe titles is an abuse of a magazine supply model which is broken.
To the major publishers – ACP Magazines, Pacific Magazines, FPC etc. I say – you’re losing out too as it is the small titles which drag labour, real-estate and cash from attention to your product.
I was wondering if some of your readers Mark are reluctant to comment on some of the blogs for fear of being identified? or do they just enjoy reading it because that is what they are thinking also.
Do good things happen from being a member of the ANF & its member web site and do they help with these types of overwhelming situations by helping facilitate alleviation such as this newsagents problem?
Hi Mark
I am always enjoy to read your comments and I also have YOUR SYSTEM INSTALLED IN MY STORE in Aug.Save me a lot of time.I read the sun tele today about NSW lotteries wants to sell their products in 7 eleven store in NSW.It will affect our revenue. We have been working hard over these year and the goverment do not see that. They have tried this before in Vic and failed.
Regards
Chinh,
I have not seen this story. If this is the plan it will hurt traffic in newsagencies considerably. Newsagents ought to be lobbying their local members about this right away. The balance in our businesses is fine and lottery traffic is a key element.
mark
Derek,
I think that some newsagents are silent on issues of concern to them out of fear as you suggest. Others are too busy to even think about the issues.
Not enough newsagents understand the scope of change affecting their businesses. Not enough are prepared to stand up for their rights. Not enough actively engage in their channel. Take Association elections for example. Not enough stand resulting in mediocre representation.
You ask about the ANF. I am a member of five industry associations (for a range of reasons). The ANF is the most commercially focused yet the least active and least successful in representation of member interests. VECCI is the best association in terms of association services and the ANF ought to aspire to be as good as them.
Mark
In reply to the ‘newbie’ newsagency, all I can say is early returns!, early returns!, early returns! Each return that I do can have up 50% extra early returns content ie. if the returns credit totals $1500, there can be up to $750 extra in early returns.
I too have tried to get allocation order changes to little avail even after speaking to supervisors and managers. Either it never happens or over 6 months the titles eventually come back – should be called bommerangs – not magazines!
The only way I have found to make standing order changes work is over the phone speaking directly to the operator and not by fax in bulk. So when I have a query regrading shortages or extra stock etc, I will also have 3-4 standing order changes as well. If you make it more that that, the operators will get narky as they have too many other calls to answer (which is fair enough). I havent tried the new Network online system yet for allocation changes, but at least you know that it has been received and should be reviewed with some correspondence whether it has been accepted.
Hope this helps….
I am also interested in hearing what others think of the new online Network system – I like it and appears to suit 80% of my normal enquiries/request. Certainly happy to no longer be waiting on the phone for ages. Hope the others distributors do the same!
Mark
Concerning the new netonline-
I really do think a lot of effort has been made to address areas such as changing allocations, increasing allocations, changing the base qty of particualr mags the shop likes or dislikes. Shows if titles are out of stock, lots of little things like that. Information access is important and I think Network have given that to us.
The shortages / damages function is excellent in regard to knowing a credit or a replacement will happen.
I have not made a call or a email since it came on line and I am sure network were looking for this kind of result.
Two things I came across that need more investigation is that you can only adjust some magazines (I think the ACP stable) you can add any title in its distribution network however I dont think you can alter qty’s etc. I may need correcting on this one.
Of course the one function that is not on there that should be on there is the supplementry magazine returns function. It would be a newsagency’s “lotto” win I am sure if it was included in this version. No offence to Network but it would be the most used function by users by far.
A quick summary Derek