I have now seen data from enough newsagents know that we are overloaded in the last week of the month with magazine stock. In one case, one supplier provided 37% of all stock in the last week. The problem with this is that the newsagent had no idea this was coming because titles were either one-shots or imported. The newsagent turns up to work last Wednesday, sees the problem for the first time. They have 30 days to pay for this stock bonanza. What other business operates like this – hitting small business within five days of the end of the month, all so conveniently within the billing cycle.
Newsagents are in the middle of a cash crisis and unless there is fundamental change in the magazine supply model – such as loading the last week of the month – more newsagents will close or exit the channel early.
Through my software company we have given newsagents a reporting tool to track the cost of end of month overloading. Hopefully some will use this to prove the behavior I have described.
Hi,
You know how this works ?
1. They have their budgets
2. By end of month they have a picture of what returns/credits they have had to give us
3. Last Weddnesday they set about filling whatever they can to meet their budgets.
This is the only explianing as to why my invoiuce hasn’t come down despite cutting titles, sending copius amounts of returns back etc…
e.g by 22nd bill is $5K their budget $9k – sure enough by the 25th I’ll receive the equivalent of $4k’s worth of mags……,
What can be done ?