Talk to any newsagent and they will complain that magazine distributors overload them with stock in the last week of the month and even more so in the last week of the last month of the Financial Year.
To help newsagents determine if this actually happens to them, my software company early last year released a report which tracks magazine supplies by distributor by week of the month. Here’s a small portion of the report (I have obscured the newsagency name):
Our analysis of this data from several newsagencies shows that one distributor is ahead of the pack in loading the last week, delivering 33% of their stock in the last week and in time for the end of month billing.
To be fair I would note that distributors do not always have control over when magazine are distributed with publishers the other key players in this timing.
By providing this reporting tool last year, Tower Newsagents were able to deal with facts surrounding end of Financial Year magazine scale out. In some cases I know that newsagents were able to negotiate fairer arrangements.
This report is an example of how newsagents can use technology to be better informed and therefore more factual in their public comments. It also drives newsagents to use their technology as more than a glorified cash register.
To the 1,400 Tower Newsagents my message is be vigilant and use the tools in your software. Check the report and please let me know if you have been overloaded in the last week or two of June 2007.
Nelson, As I note in the blog post: I would note that distributors do not always have control over when magazine are distributed with publishers the other key players in this timing. I don’t know the breakdown in numbers. Since my relationship is with the distributor it’s where I’d focus my attention. mark
Nelson, Magazine distributors determine what I receive. They contract with publishers to distribute their stock. Publishers decide when they publish. Some publishers, such as ACP magazines, determine their own scale out by newsagent. The vast majority do not. These, Nelson, are the facts. mark
Nelson, you are obviously not a newsagents, because if you were you would realise that customers DO blame the newsagent if the paper truck is late. We are the point of contact so we must shoulder the blame or get out of the game. Magazine distributors should do the same.
Mark as for the deliveries on the back end of each month, I recieved a fax from a magazine distributor stating that my supplementry returns will not be processed after the 10th of the month.
This leave newsagents holding 2/3 of a months worth of unwanted mags on the shelf that cannot be returned or will not be credited until the next month. This has cost me over $10,000 in the last 2 months in delayed credits. No wonder newsagents are packing up and moving on.
Nelson, netonline does not allow for early returns to be processed, This in my case amounts to close to $4000 to $5000 per month. Network has indicated that all early returns sent back after the 10th of the month are unlikely to be credited in that month. This is the problem I’m concerned with, each month I’m forced to either hold stock on the shelf that I don’t want or send it back early but do not get any credit for a month. Either way network gets more money out of each newsagent then we get back in sales. We are trying hard to reduce the quantities and number of publications we get however getting a response from either publisher or distributor is almost impossible. In the next 2 months I will be out of pocket $8000, in a period that is at best slow this could be a killer blow to most small business.
Gotch offers fantastic support for newsagents wanting to review their supply model. Network is improving in this area as well – I think Network will be a different company in 6 months compared to what we were used to from the last year and a half. The changes they are making are as a result, in part, of newsagent complaints.
In the meantime, Tower Newsagents do have a report which provides evidence of what happens at the end of the month and the end of the financial year and this is more helpful than a complaint without evidence.
Nelson, I am talking about the way network handles supplementry returns not allocations. I am saying that we as newsagents are billed for an entire month but are only allowed 10 daysa to send back supplementry returns. My point isa that network in my case is using the extra 20 odd days to pad there own cashflow, while at the same time robbing me of cashflow. Yes I will get the allocations dropped but for now I am out of pocket close to $13000. On a cost of sale account of arount $9000 per month this is over 25%.
I am talking about the cash grab by network not allocations. As for having a whing on a public forum, I don’t think telling fellow newsagents that they are not alone in getting the heavy hand of network is having a whing.
What a load of crap nelson, grow up
What a load of crap nelson, grow up. My newsageny is in the public forum. Its called retail. If people do not like my service then they can go else where. Maybe the same should be said for magazine distribution. Open it up to open competition and see the service levels go up. If I get lazy then my customers soon tell the world. It keeps my business at the front. My question is why are you so defensive if you are a newsagent?
Nelson,
You say that “There is much that could be improved that would benefit the industry”, yet you choose to put up with those things that need to be improved. Newsagents are not “whining” here. If no one ever discussed the issues facing the industry how would anyone ever know that there is something wrong.
You seem to take the attitude that puting up with the current situation is good enough. Continuing to do exaclty what our suppliers want is not a solution.
As for the public commentary issue. Luke is right, retail is a public forum. Customers comment publically on business all the time. Some people even make a living out of it; ever heard of a food critic? There are websites dedicated to providing a forum on which customers can publically comment on business.
Jarryd, I didn’t say i put up with anything from any supplier. I treat suppliers with respect and present factual arguments / cases to them and get results for my business.
If you must know what i wish to see in improvements is from distributors is weekly online returns and a settlement discount for paying to terms or an increase on 25% magazine margin if I agree to a direct debit from my account. From publishers I would like to see product recall dates pulled back so that when a weekly title say Womans Day or New Idea is issued on each Monday, I would have a on-line returns form to return the product from the week before.
As for your food critic comment, yes I have heard of them. One difference between a newsagent commenting on suppliers and a food critic commenting on a restaurant is a food critic does not have a contract with the restaurant & if they did it would be an unbiased opinion. Newsagents have contracts with suppliers and that is the main and the key difference and the reason why i feel it is wrong to so openly comment on a trading and contractual relationship.
Nelson,
A food ritic does have a contract with the restaurant. A contract is entered into by both the sellor and customer whenever goods or services are sold. Their opinion of a restaurant’s food quality and service are no different to a newsagent’s opinion of a distributers quaility of service.
I cann’t see how you percieve it wrong to openly comment on a trading and contractual relationship. If it cannot be discussed openly how would larger issues with the relationship come to light and be dealt with?
Nelson,
If that commentary is not in breach of any legal obligation … YES.
A public forum allows open and transparent debate. It is the best place for discussion.