Last year NDD sent us 64 copies of bargain shopper. We returned 34. Some weeks later they sent us another 40 of the same issue and we returned 30. Some weeks later they sent us 29 and we returned 18. In all, 133 supplied and 82 returned – a 38.3% sell through rate. Fast forward to this week, NDD, a company claiming to be magazine distribution experts, sent us 75 copies of the 2007 edition of Bargain Shopper.
This is unconscionable conduct by NDD. There is no support in our sales data, data they also have, to support such a scale out. In my store alone this title is costing me $559.68. Based on my sales history I can expect to return more than 60% of stock supplied. This means I will have $447.75 of my cash being held by NDD purely for their benefit. The cost of this cash, the real-estate taken and the cost of labour wipes out any profit from the title.
It is appalling that my newsagency and thousands of other newsagencies are being abused by NDD in this way. It is this behaviour which is killing our channel. I will lodge a complaint with the ACCC about this conduct. Hopefully other newsagents will as well.
While I will also early return the half of what I have been supplied and make a case to NOT pay for this excess stock, it is appalling that my time is wasted with this activity.
Good on you Mark. Maybe you could post a copy of your letter to the ACC so we can all have a reference to ‘cut and paste’ our own grievances to them re not only NDD but the other suppliers. Collectively, as a channel, maybe 2007 can be the year we take a stand and put a stop to this cash sucking and time wasting excercise.
I will Fiona. I have drafted the letter but need to check supply and return facts before I finalise it. It should be on the blog by Tuesday. Mark
Fast forward to this week, NDD, a company claiming to be magazine distribution
… taken and the cost of labour wipes out any profit from the title. … half of
what I have been supplied and make a case to NOT pay for this excess stock, ..
to Pay it forward for profits
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