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Freight move increases cost of magazine returns

The move by magazine distributors NDD, Gotch and Network to Toll Holdings for freight looks set to significantly increase the cost of returning unsold magazines.  One newsagent told me that their cost will go from $25.00 to $66.00.  This is what they will have to pay for stock they did not order and which has failed to sell.

Newsagents are understandably angry at this cost increase imposed on their businesses.  If distributors let newsagents return only then cover then the cost would be significantly less. NDD performs worst out of the three magazine distributors based on the data I see in terms of sell-through – meaning higher additional costs.

The magazine distribution model which makes newsagents liable for the cost of freighting titles which have not performed is flawed.

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  1. Jennifer

    It really is just another slap in the face for newsagents.

    If they allowed for top returns for all titles wanted or not over supplied or not the hip pocket wouldnt be so badly effected and alot of newsagencies would be so annoyed and frustrated.

    Copy of the email
    Returns Pre‐Paid Service
    Toll Fast is able to offer a convenient and economical pre‐paid service that will allow newsagents to
    easily return their freight to Gordon & Gotch, Network Services or NDD. The pre‐paid coupon will
    provide you with a detachable tracking number should you wish to check that your goods have been
    returned.
    How will it work?
    The process will work as follows:
    • Call 13 35 75 and order your pre‐paid coupons. For metropolitan returns each coupon will
    cost $7.70 (inc GST) and they will be supplied in books of 15. The total cost is $115.50 for 15
    coupons. For country returns each coupon will cost $13.20 (inc. GST) and these will be
    supplied in books of 10. The total cost is $132.00 for 10 coupons. Coupons cannot be
    purchased separately, but are valid indefinitely.
    • Quote your credit card details to the operator & the coupons and tax invoice will be posted
    to you. Unfortunately, we are unable to offer account facilities on pre‐paid coupons.
    • Upon receipt of the coupons, you can then send stock back to your supplier. The coupons
    have a detachable tracking number & a butt section that allows you to record date sent & to
    whom. This tracking number should be quoted if you have an enquiry about your return to
    your supplier.
    • The coupons are valid for a 12 kg parcel. For additional parcels a further coupon will be
    required.
    • You can give the return parcel to the driver when a delivery is made or leave the freight in a
    pre‐arranged secure pick‐up point.
    Using the coupons
    Please note that Toll Fast does not authorise its drivers or agents to accept goods on any other basis
    than outlined as above. If goods are given to a driver for return and some other payment is used, Toll
    Fast takes no responsibility for the goods.
    You can use the ‘butt’ section to
    record date & receiver details
    Use a detachable tracker if need be for
    your records

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  2. Sarah

    This doesn’t make sense. Currently our magazines are sent back by the same company who delivers them. This company are cheap, fast and reliable. They also allow parcels up to 20kg for a smaller price.

    This new model will only give us ‘pretty’ extras for the services offered.

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  3. Y&G

    Is this nationwide?
    If so, why haven’t we all received notification?

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  4. Max

    Y and G,

    I got an email from NDD a few hours ago.
    I think I got an email from NDC a few days ago.

    I think you are in my general area
    If Osborns do your deliveries, give them a call. The lady there said no change at this stage, except they will charge you for NDD returns instead of NDD charging you.

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  5. Y&G

    Thanks, Max.
    We don’t use Osborns, but we did call our transporter, who knew nothing about it, but was not surprised.
    No emails from NDC as yet.

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  6. Jennifer

    copy of NDC email

    25th September, 2009
    Dear Retailer,
    Re: Change of Delivery Contractors NSW & Victoria
    I am pleased to announce that Network Services will be changing delivery
    contractors in NSW and Victoria. The new provider will be Toll Fast, effective first
    delivery day Monday 5th October 2009.
    The majority of existing drivers will continue to service retailers, thus minimizing any
    impacts on you. Agents should expect that they will receive their deliveries as
    normal on Monday 5th October 2009. Should a delivery issue occur, please call the
    contact centre on 1300 131 169 before 10am.
    In those areas where the delivery contractor will change, affected stores are in the
    process of being contacted individually to discuss delivery instructions and secure
    drop locations. The regions listed below are changing drivers:
     Newcastle
     Gosford
     Canberra
    Network Services is excited about the new opportunities that Toll Fast will bring and
    we will be in contact over the coming months to communicate those improvements.
    This is a significant change and both Toll Fast and Network Services are committed
    to ensuring the transition is as smooth as possible.
    As a reminder, all retailers should review and discuss their ongoing physical returns
    deliveries with the party responsible.
    Thank you in advance for your co-operation.
    Regards,
    Niall Murphy
    Group General Manager
    Network Services

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  7. Jennifer

    This email has just been sent by NDD

    RETURNS PICKUP SERVICE re: eAlert 30.09.09

    For clarification, the Returns pick up service provided by NDD’s previous master contractor is no longer available.

    The Returns pickup service offered by TollFast is OPTIONAL i.e. it is not mandatory.

    NDD Customer Service

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  8. Y&G

    Thanks for posting, Jennifer.
    Clarifies things no end 🙂

    We’re very happy with our present transporter, and their sticker system, so hopefully that arrangement will remain in place for a long time yet.
    I guess it’s just a matter of time before other states cop this, though.
    Can only hope the little guys keep getting the work and distributors resist the temptation of getting into bed with the ruthless big guys. Oops – they’re also ruthless big guys..

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  9. carroboblin

    Let’s not forget that as a publisher we have to pay the distributors a significant amount as well if we want full copy returns!

    I was told that we had to pay this to cover the cost of getting the returns from the newsagents…. Both newsagents and publsihers should get in a room and find out what each side is being charged for. Twice.

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  10. Mark

    Carroboblin, we pay the freight. We also top magazines which can be topped for free. My understanding is that some publishers are charged a topping charge.

    Getting in the room together would be ideal.

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  11. Luke

    What a tangled web these grubby little distributors weave, charging both sides for returns and pocketing the $$$$.
    Good to see our associations looking after us with this NOT.

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  12. Peter Ruxton

    Here at Cootamundra Green Gables / Doble Transport have advised they will continue to Pick Up Returns at $5.00 as is currently the case with no change. So I do not have to spend 1 red cent with Tolls.

    Peter Ruxton
    Cootamundra Newsagency

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  13. Michael

    A podcast on this topic with all concerned could reveal a lot.

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  14. Michael

    A podcast on this topic with all concerned could reveal a lot.

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  15. Y&G

    Heee
    The grubby little distributors’ grubby little secret is out..

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  16. anon

    fix that stutter Michael

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  17. Michael

    I actually have a stutter anon. It’s quite hard to fix actually.

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  18. anon

    must be a bitch when you’re typing

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  19. Michael

    Thanks anon, I haven’t been teased enough as it is yet.

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  20. anon

    Try going through life called Anon. My surname is Amuss so it has been particularly hurtful. I understand your plight.

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  21. Michael

    Ugh!

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  22. todd the toad

    Michael – ttttttt today junior!

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  23. Helen

    Hey anon and todd ..i dont stutter.. your both absolute dickheads!!
    Piss off and find a blog that deals with small penises will you

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  24. g

    Helen you seem to have a fixation with the male anatomy – can I have your email address

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  25. Aaron

    how much do newsagents currently pay to return the magazines? or is it different per store?

    why don’t the distributors pay to pick up their mess?

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  26. shaun

    we pay on average $20 per box

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  27. Luke

    Just got the eamil that GG is going to toll fast. All three little piggies are getting to the swill and ripping us off.
    Can anyone name another industry that charges the retailer for returns of stuff they did not ask for in the first place?

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  28. Shayne

    Only some retailers (us newsagents) get charged Luke, other retailers do not.

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  29. Dean

    We pay about $2 per box.

    For G&G their returns depot is 2 minutes away so I drop it off. This is a saving not available to most newsagents so we are lucky.

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  30. Aaron

    is the returns thing the same for supermarkets?

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  31. Michael

    I’l love a podcast on this from all parties.

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