A newsagent colleague contacted Intermedia yesterday wanting to purchase InStyle – for the Hairdressing Professional magazine for sale to a customer. The Intermedia representative said they would not supply the newsagent and that they wanted the customer direct – expecting the newsagent to hand over customer details. After further discussion agreement was reached to supply the title at full retail price to the newsagent.
So, the newsagent, providing exceptional customer service and hunting down the publisher, is rewarded with no commission. The usual commission for a magazine is 25% of cover price. Shame shame shame Intermedia.
Intermedia needs to decide whether they want newsagents to support their other titles such as Inside Film. Newsagents could be excused for pulling Inside Film if Intermedia does not change its approach.
Newsagents are the magazine experts. They offer a low cost road to market for publishers, especially Australian publishers. Companies like Intermedia need to respect newsagents and work with them on building sales rather than rejecting them.
Mark
You did not state whether the customer wanted to buy a copy of the current issue of InStyle – for the Hairdressing Professional magazine or a copy of an earlier issue? There is a difference. If it’s a current issue, newsagents must order it through the distributor. However, if it’s an earlier issue, many publishers provide a Back Copy service to the general public, which includes newsagents who are invoiced and can then on-sell to their customers.
In either case the newsagent ought to have access to the product at a discount. That Intermedia asked first to take over the customer is bad form.
No, Mark, newsagents are not entitled to a discount in both cases. Newsagents only sell current issues of magazines. And no “exceptional customer service and hunting down the publisher” is required for a newsagent to service a customer. All the newsagent has to do is contact the Distributor to get one in for his customer.
However, if the customer wants an earlier issue, a newsagent has 2 options:
1. Tell the customer to order it direct from the publisher; or
2. Facilitate their valued customer by ordering it from the publisher, paying the price charged and on-selling it to said customer. Don’t overlook the fact that the publisher will have to post it to the newsagent, which is an additional cost.
It behoves newsagents to remember that Publishers are in business too!
You’re entitled to your view as I am to mine. Fro attracting the customer and s4ervicing their request the least you could do is share 25%. Refuse newsagents and don’t expect them to find you. If the 75% remaining is not enough for you plus your advertising revenue then maybe there is a problem with your business model.