All it takes is one extra copy to make a magazine unprofitable in a newsagency. Publishers and distributors allocate based on what they think you need and this is done within the framework of what works for them. They do not understand the costs newsagents operate with, the challenges of even one extra copy nor the risks associated with this. If we complain about an increase in supply by one copy they will usually come back with disbelief that we would complain about one extra copy.
It’s not their money at risk, their retail real-estate, their labour managing the stock on the floor nor their obligation if the extra copy is stolen.
I can understand extra stock being sent if there is a promotion or some other activity by the publisher to drive sales. Where there is no such activity and where the title is not within fair range of selling out, sending the extra copy is an abuse of newsagents – especially when you consider that enwsagents have to fund returning the magazine.
I cannot understand extra stock being sent when there is no justification in the sales data. Indeed, I am suspicious that I am again being used to act as a bank – providing cash-flow to an unfair magazine distribution system.
Last week we received one extra copy of Renovate & Extend from Universal magazines. There is no justification for this.
I am happy to take the extra stock if someone else carries the risk and funds the decision – if the business making the decision ensures a return for me. As it stands, I will lose more money on Renovate & Extend thanks to their decision.
The more often this happens, the sicker the magazine distribution model becomes.
Some publishers, distributors and the ANF are working on a magazine code of conduct. From what I understand of this, it will not address most of the distribution issues I write about here including this one.
Standing Orders shouldn’t be touched by distributers. It’s in the industries best interests.
This morning I took three issues of the shelf that hadn’t sold, yet I received five issues this morning for no good reason. WTF?
Ok, am new to this industry (have a long history in Accounts and Administration) and have charge of our stores magazines among other things. I read this blog with great interest and have learnt a lot and gained interesting insight into the industry.
To get to the point, a lot of talk is about the “real estate” that a magazine takes up and the cost of it. I would be interested to know if anyone has calculated the cost per magazine is (obviously it would vary from store to store depending on overheads)?
I too, consistantly return magazines which bear no relevance to the demographic of our area and yet often receive little of the magazines that do.
B, I’ll post a copy of my cash-flow report from a few years back shortly as this outlines how to work out the cost.
In a shopping centre newsagency, a magazine pocket and labout to put our and return that stock costs $3.50 a month.
Hi Mark
Tomorrow’s increases by NDD is interesting as they have increased a few of our standing orders.
Cheers
Steve
Regarding the proposed Code of Conduct, they also need to consider how they deal with undersupply situations as well. As a smaller newsagent, our standing orders are often overlooked altogether, for example if a magazine is in short supply into the country, we might get no supply at all. Yet I can go to a nearby larger agent and find ample supply on the shelf, many of which will probably be returned. A more equitable approach is required.