NDD sent through more long shelf life magazine junk today. We received 5 copies of Free Games 4, another title from IDG Communications Australia. Free Games 4 joins Build Your Own Games, Ultimate PSP Buyers Guide, World of Warcraft and Grand Theft Auto. Each has a shelf life of between four and six months, each is cash-flow negative and each makes a loss for my business. Being small in size, these titles are more prone to theft – newsagents carry the cost of that as well.
IDG and NDD are abusing newsagents by supplying these titles without compensation for the extra long shelf life. They suck cash out of our businesses and this impacts in other categories. They would not do this to any outlet competing with newsagents.
Not only are we out of pocket in funding the stock while it’s in our shops, we also have to pay freight for product returned. I can’t imagine Coles or Woolworths putting up with this.
This is a scam. Newsagents pay for the titles a month after they arrive and are not repaid for returned stock for a month after they are returned. In the case of these IDG titles, hundreds of thousands of dollars is sloshing between NDD and IDG – cash funded by newsagents. We are their bankers.
These IDG titles would be a good starting point for newsagents to take collective boycott action. The current supply model is uneconomic. In fact, it is unconscionable based on the data I have seen from many newsagencies. There is no justification for the quantity supplied or the long shelf life. While the Trade Practices Act denies us the opportunity, today, to take collective action, morally we would be right to do so.
I am offended that IDG is promoting direct sale of the titles from its website. They ought to point people interested to newsagents – there are 4,600 of us – one near you. That they do promote purchase direct from IDG like this disrespects us. Here they are supplying titles we have to fund and carry for up to six months and they say thanks by competing with us.
The sooner newsagents are firm and business like in controlling the real-estate and labour assets of their business the sooner we will make more money for ourselves and the suppliers who respect us.
Thanks to Vaughan Lawrence of Beechworth Newsagency for tipping me off about Free Games 4 today.
Marketing magazine and this sister publication are more titles which ought to be euthanised or be subsidised in the retail channel. This $17.00 guide sits for a few months, sells nothing and is returned. All the while my cash is gone, my labour is used and my real-estate is wasted.
I will continue to email publishers in an attempt to highlight this ‘bad business practice’; as should all newsagents. To email the publishers each time we receive these titles is a time consuming process , however it must be done and the distribution model must change. I am certainly not asking for extended terms on these titles, i am asking for increased commission for anything that is to remain on my shelf for 3 months or more. All emails i send to the publishers are being emailed to The ANF and VANA to keep them in the loop. I believe the ANF is putting alot of work into changing this practice, however until things do change i urge newsagents to use their collective voices to force change.
Vaughan Lawrence
Beechworth Newsagency
I would imagine that as newsagent of the year you will have some clout! You are absolutely right, you all need to make the time to get the point across, even if you all have very little to spare. Best of luck to all of you. It is mind boggling to imagine how much time it takes you all to do so many returns when you have sold so few of the rubbish titles. It is good to hear the you feel the ANF is working on the issue.
The problems with the magazine supply model are not new. It has been this bad since 1999. The ANF has done nothing until now. I hope 2007 is different. If must be otherwise more newsagents will buckle under the pressure.
At least Vaughan Lawrence is doing something about it, and not continually whingeing.
What response are you getting by emailing publishers, Vaughan?
Lee,
There are many newsagents doing something about it. I have a good relationship with Gotch and am happy with their supply arrangements. I enjoy an element of control unattainable elsewhere. I also have a good relationship with Network – not as good as Gotch but commercially focused nevertheless. NDD is the problem child – they have the best technology and therefore the best knowledge yet they grossly and knowingly oversupply.
mark