In April this year I blogged about gross oversupply of Reader’s Digest by their distributor NDD. At the time, my supply had been increased without justification. As a result of my blogging, supply was reduced to a more reasonable level. Last week my supply quantity for Reader’s Digest was increased to a gross oversupply level again. I have been supplied more than three times what I will sell even in a good month. NDD and its computer systems know this. They have knowingly taken advantage of my newsagency and, I suspect, many other newsagencies. This is unconscionable conduct. It is the type of magazine supplier behaviour that newsagents ought to complain to the ACCC about. It is the type of conduct which places newsagents at a disadvantage as it removes cash from small businesses as they have to fund this gross over supply.
Newsagent competitors in the magazine category control what they receive. Newsagents do not. NDD will say that I’m wrong on this and cite many examples of how newsagents can control supply. My questions is how is such control evident in the supply quantity for Reader’s Digest this month? Following my blogging in April this year I reached agreement with NDD about supply quantity for Reader’s Digest. Barely eight months on and it is being ignored. I do not control what I receive. This disadvantages my newsagency.
Data I see suggests that Reader’s Digest sales are falling. If we allow for shrinkage (theft and other loss) the sales fall looks worse. Reader’s Digest is easy to steal given its size so I’d suggest shrinkage is above the average of 2% I see for magazines.
Photo source: reader’s Digest website.
Hi,
I, also, suffer from this issue and have done for quite some time. What can be done about this ? Can we really complain to the ACCC and if so, are we likely to have our supply “cut-off” ?
Something must be seriously done to curb the greed of these people ! If they chose an all or nothing game, we will simp[ly be forced to cancel contracts and use that money to purchase them elsewhere – in this way we at least do not lose money on magazines, which is the situation at the moment.
Cheers,
Phil
What does it cost you financially?
Can you send them back & get a refund.
How much do they cost to purchase.
Readers Digest is a weird little magazine – like something from the Twilight Zone.
It is a bizarre problem.
We can send unsold copies back but we’re out of pocket for around 8 weeks. So, it’s a cash flow issue. In my case the additional stock is costing me Over $100 and while that’s a small amount, the real issue is that I didn’t order the stock.
Hi Guys,
I was mad about Reade Digest for some other matter and I Google the issue and find it here. They send me two Readers Digest magazine for free (I applied on-line) but I found the content not satisfactory so I decide no to buy a one year subscription for 49.80 AUD. but after that they are keep sending me a bill and threatening me that if you do not pay asap they will take action. I just called them and they apologized but I am sure they are doing this for other people to earn more money. I used to Reader Digest in some other country but I found the content here in Australia too much commercial.