Melbourne Home Design and Living is a magazine which without the generosity of newsagents would most likely not be published. We will carry this title on our shelves for six months, making $1.73 a copy. We need to sell three copies a month to cover costs. Being so thick we have to give it flat-stack space. There was none so something else had to go. Publishers like United Media Group and their magazine distributors do not realise that we have finite space in our shops. The sooner we negotiate commercial terms for access to our real-estate the better.
Melbourne Home Design and Living is primarily a vehicle for advertisers. Glancing through the latest issue, I suspect that this publisher will make more of their revenue from advertising than cover price than compared to a regular magazine. This explains the low cover price for such a thick title. That access to our channel is so cheap lets them get away with this.
The cover price is only about covering logistics and a crumb or two for newsagents. One day we will successfully say no to situations like this. Use of our assets has a cost yet we do not price them this way.
Looking at your stack, you have might get a total profit of $12!
I reckon titles like that (long shelf life, big supply etc) should have a, say 33% comission for newsagents (Who are probably the only people to stock it).
Just my view…..
In addition to my above comment to make it more understandable for publishers/distributors.
Is that it’s not a case of earning more money by putting them on the shelf and sitting on my arse, but getting of it, and promoting those types of titles more.
Or look at the above photo, that’s all the promoting you get for $1.73 a copy – a flat stack at the back of the shop.
Are advertisers of that magazine happy with that?
WOW Just read G&G are giving us 35% margin for Popular Science.
Kudos (This is the second time I’ve ever used this funny word!) to G&G !!!
For April issue only FYI. Still a step forward.
Mark I’m the publisher of Melbourne Home Design and Living.For many years we have seen over priced thin magazines sitting on your shelves not selling at all. We try hard to give you a magazine that sells. I can show you figures from G&G showing 80% sell through rate in Newsagents. I’m a publisher with a family background in newsagency ownership. Did you notice all our magazines are delivered to you in the first week of the month to give you extra time on the shelf before you pay G&G. Also we spilt our distribution to further help with your cash flow.
Give me a call. Always happy to talk with Newsagents and do what we can to help both our industries survive.
Dirk, Thanks for joing the conversation here. I agree that the magazine has a good sell-through. My challenge is that the cover price is not enough for me to make a return on a 25% margin. I only make money based on the cover price, not advertising.
In a shopping centre, with rents of $1,500 per square metre an more, the return we achieve from every pocket and flat stack space is crucial.
Do the calculations on the space, labour and cash-flow costs of supportingg the title over its shelf life and assess for youeself its performance.
We all have businesses to run and I am sure that independent publishing is challenging. Newsagencies are challenging too – especiall since we only make money from copies sold.
are you pissed Michael?
Hey Dirk,
Completely off topic… But have you been water skiiing at Yarrawonga or to the Boosie Rouge Cafee to see those old 60’s bands in the past 15-20 years… How the ‘F’ are you…
By the way, I know have to sell the crap you publish…
Cheers
Peter
Peter
anon, no, they played well considering the rain. Next year….