Magazine sales are down across the newsagency channel since the start of the year yet magazine distributors are yet to adjust supply except for major publisher titles with tightly managed print runs. Given that we are twelve weeks into 2009, I would have thought that the distributors would have had sufficient sales data with which to adjust allocations.
My concern is for titles outside the top 200, titles which, in most newsagencies, are borderline profitable. With magazine sales down in newsagencies, on average 12%, magazine distributors ought to be cutting supply and therefore not expecting newsagents to act as their bank until the economy (and magazine sales) improve.
While distributors will argue that they do adjust to reported sales volume, I am only seeing this with titles from ACP Magazines, Pacific Magazines and one or two other publishers. Supply for the majority of titles has not been adjusted to reflect sales data. While I am sure there are instances where adjustments are done to reflect slower sales,this is not widespread.
I’d like to see the major publishers engage with the distributors on this issue. Supply at the current level starves newsagents of cash and this challenges their ability to professionally serve the needs of the top selling titles. The major publishers could use their economic muscle to help newsagents and help themselves.
Through the work I do with the Tower Newsagent community I see data from many newsagencies each week – I know what I am talking about when it comes to current sales data and the worsening, by inaction on sales data, supply situation for many magazines. I’d be happy to work with suppliers and provide evidence to support my claims.
Newsagents can easily see the situation for themselves by printing a Magazine Sell Through Rates report. This will show the fall in performance – due to supply at 2008 levels – for many titles.
The magazine distributors can fix this situation easily by not using newsagents as their bank – by adjusting to reflect current sales data.
This is on my mind this morning because of another email from a newsagent in trouble. They are losing money on magazines and the main distributor at fault is making it hard for them to adjust supply.
Where is the green agenda on this?
Steve – nowhere to be seen. May of these are UK and US titles which are shipped here and then pulped if they do not sell. The come out of the UK and US effectively on a firm sale basis.
iN ADDITION TO THIS OVERSUPPLY PROBLEM WE ALSO NOW HAVE TO CONTEND WITH ACP SBR PROGRAM! WHY CAN’T THEY ASK IF WE WOULD LIKE MORE STOCK BEFORE SENDING??
I just received a flyer from a surf shop friend about a surfing magazine called “Stab x Spit” that is intending to supply 40,000 copies free to Surf shops nationally as give aways and then dump 10,000 copies on Newsagents to try and sell at $2.95. I cannot believe this publisher expects newsagents to put up with this cynical abuse of the system.
NO FULL RETURNS FROM PACIFIC TITLES-COUNTRY AGENTS
A positive piece of News for Country Newsagents, although not for all Newsagents.
Please find a copy of an email I received from Gordon & Gotch today.
REVISED RETURNS PROCEDURE
Dear Country Newsagent,
Effective immediately, Pacific Magazines does not
require full copy returns from country newsagents.
This decision has been undertaken by Pacific Magazines in
an effort to minimise returns costs for country
newsagents following consultation with a panel of stores.
Please disregard any returns form request for ‘full copy’
returns of Pacific Magazines titles and return only ‘front
covers’.
Thank You,
Gordon and Gotch Australia
Home Beautiful New Idea Who
K-Zone That’s Life
Pacific Magazines publications include:
InStyle Practical Parenting Women’s Health
Girlfriend Mr Wisdom’s Sudoku Weight Watchers
Famous Mr Wisdom’s TV Hits
Family Circle Monument Total Girl
Diabetic Living Men’s Health That’s Life Puzzler on the Go
Bride to Be marie claire That’s Life Bumper
Better Homes & Gardens Management Today That’s Life Fiction
Wow- My above comment went down well. After all the difficulties Newsagents experience and have complained on Distributors / Publishers demands on Full Copies returns, progress is being made.
Pacific Magazines should be acknowledged for this trailblazing annoucement, not a win win but it is the start of a win win for all Newsagencies, I guarantee other Distributors / Publishers will come on board hopefully for all Newsagents not just for Country.
On behalf of all Newsagents thankyou Pacific Magazines.
Derek.
Derek I haven’t received the above notice to date at my country newagency!
All our mags are tops only in FNQ, a big thanks to QNF on that one
Neil, I am NSW, my apologies I would expect Pacific to be unbiased and make it all of Australia Country.
The point is it is human nature to highlight all the wrongs in life and when something positive happens within the industry it is ignored.
That is why I believe although good for the general industry this blog is in my opinion agenda driven. All news should be reported the good also.
Derek
I know this is off topic but need to vent below is a copy of an email I sent one of the magazine company because of limited supplies for the xmas period
Out of frustration may I ask why brother seeking our advice on x-mas supplies if you just plan to ignore it.
I am, will and have lost sales already because I dont have the supplies I need. I havent been able to supply ample supplies to my sub agents and have sold out already on some titles. While you might say reorder them at this time of year extra deliveries either arent delivered or are delivered during the middle of next week which by the (depending on the title) is too late.
I might not be the biggest retailer on the planet however its hard enough working 7 days a week without being constantly slapped in the face by unthoughtful supplies.
Sadly I would like to say this is a one off problem however over the 10 years we have had the newsagency its the same story each and every year. SHAME ON YOU