Jeff Webster is probably a nice bloke. His Fitting Out for Bay & Coastal Fishing magazine demonstrates his passion for fishing. So, this post is not a crack at Jeff of his magazine as such.
I am losing money from Fitting Out for Bay & Coastal Fishing and cannot justify carrying it. My sales data proves that yet NDD sent me 3 copies yesterday and expect me to keep it on the shelves for six months. I might sell 1 copy and if I do and adhere to NDD’s request, I will have lost $18.52 supporting Jeff Webster’s business. This loss takes into account the cost of real-estate and labour for the title. It does not factor in the cost of cash given that I will have paid for the copies sitting on my shelf for months.
I’d expect that more than half the newsagents receiving this title are losing money by carrying it. While small publishers want newsagents to carry their niche titles, newsagents cannot afford to provide free billboard space. It is uneconomic.
An alternative model would be a marketing payment to newsagents for their billboard space coupled with delayed payment for the stock.
My newsagency is well satisfied with fishing related titles. I can afford to cut this one and have returned the stock to NDD with a request to not supply again. I should not have to ask this since the sales data held by NDD shows that supply of the title would lose money for my business. They have an obligation to not put me in this position.
The problem for newsagents is that there are hundreds of titles like Fitting Out for Bay & Coastal Fishing. The continues supply on such uneconomic terms is unconscionable.
The big two supermarkets charge their suppliers for co-operative advertising and for putting the product in a prominent space. Suppliers are, naturally, not happy to pay these fees but pay them so that their product is put on the shelf.
Newsagents should operate under the same regime – that is, publishers should encourage newsagents to stock their product by offering incentives.
I am sure the magazine market would experience a huge shake-out as those magazines being propped up by the current system fall by the wayside. The marginal magazines would still have the options of subscription only or internet-based
jeff is even selling his mags on ebay http://search.ebay.com.au/_W0QQsassZjeffw5594
I’ve just looked at his sales record and going by his sales record for the month, I think he better stick with the newsagency channel to ensure his magazine stays afloat.
BTY, if Jeff is happy spending a listing fee, a postage charge and final payment fee, why didn’t he come to us and negotiate. 🙂