The latest issue of Arrowords from Puzzler has not performed at all. Yesterday morning, I returned everything we had received after leaving the title on the shelves for six weeks to achieve at least something.
We also supported title with a co-location promotion in with our women’s weeklies titles for a week.
This is where the magazine distribution system is flawed. I have given over my space, my labour and my cash to support Arrowords and I get nothing in return. The magazine distributor is paid regardless. We price our assets too cheap.
As I have written here many times previously, there needs to be a non performance fee which applies where a title does not perform to minimum standards. Given the little control newsagents have over what they receive from two of the distributors such a safety net for our investment is fair.
I think the folks at Puzzler need to work on their titles. Lovatts are creaming them and while that is good for Lovatts it is not good for healthy competition on our shelves.
Nelson,
Yes I did, of course. I also trusted the company when they said they would get the model right and supply based on sales data.
This blog post is about the failure of a title on a grand scale. This is where newsagents should be compensated.
Nelson the sooner newsagents realise that they control the most important asset in terms of magazine distribution in the country the better. Then we can set KPIs like the one mentioned in the blog post.
At least I have tried to do something about it. Failed, yes, this time.
Nelson maybe it is time to renegotiate these contracts , they are out of date . Or maybe we should just sit back and put up with what ever gets thrown at us .Maybe the ANF QNF VANA NANA or any other four letter word could step up and start doing something for the newsagency industry instead of just taking our money every year and hosting great little get togethers . just a though
Nelson,
I think we have avenues of negotiate ‘protection’ against titles which have failed notwithstanding the contracts we have signed.
I expect a judge would say that a contract that requires us to take stock and carry all costs even when the stock completely fails is unfair.
At the very least we should test this.
For Gods sake just send it back as soon as they come in,this is what we do. Our P O S tells what we are selling.
D R, I understand I can do that but it is not the point I am seeking to make with the post.
Nelson I have not discussed this with the ACCC and I am not aware of any ACCC investigation into the matter.
DR – Funny you say send it straight back, I took the advice of someone at Network about 2 years not to use supp forms as the system ACP/ Network use for allocations does not recognise supp returns in its allocation model. After going 6 months without supps my sell through rate got to about 81%, i no longer use supps for any of the magazine distributors, just send of our weekly returns and we save hours each week.
We did for a stage do just as you do but in the end we were getting more stock at cost then we were selling ,We do hold enough stock to meet our sales needs We all so go on line and ajust the numbers.The person who does our returns spend about 4 hours per week doing the returns ,spends 30 min 3 times a week makeing changes to the numbers ,could be better then waiting 6 months for numbers to change .I have been a newsagent for years and have tried all ways to ajust the numbers ,but to be fair network is the best with the amount of supplies sent.
DR In terms of network i have spent about 30 minutes on netonline in the past 4 months adjusting supplies, by not using supps its fixed our problems for the past 18 months. I have used the review that Gotch offer and it has been successful as well.
Nelson…do u work for Network???
If we didn’t early return, we would be broke within 6 months…
Nelson, you appear to be very ardent in your defense of the magazine distributors regarding the “take it or leave it” contracts.
Many Newsagents are similarly minded and in full agreement with Mark regarding the dumping of non-performing titles in our stores and it seems that you are merely an “exception to the rule”.
If you are not using supplementary/early returns then you obviously have more dollars than “sense”.
Judging by your overwhelming support for the Distributors, perhaps the support and advertising commissions from NDD, NDC & Gotch are very good indeed!!
honestly if i didn’t early return i would be fishing every day of the week as i would no longer have a business as i would be broke closed down and on my way . Yes i do agree that NDC is now the prefered supplier for me GG is just a pain in the back side ever since they got rid of the old employees that once worked there , no one wants to help it all has to be done on gotch connect and that is just the slowest process going .
if this is notr a mone4y grab on the last day of the month i don’t knopw what is , i normally sell 2 fishing dvds when ever they come out to doday i received 10 for no reason what so ever as i still have 1 on the shelf with a cost of about $9 each i will make no money on these now with the extra stock they have sent and i cann’t early return for this month as it is to late And the same thing with the bisson westerns and cleveland westerns normally sell 2 of each now they send 8 of each , it is BULL that they do this on the last day of the month . i will ring up and do my normal have a winge with them and there usual reply will be it is up to you to adjust your own supply and you are not managing your mags properly .
the distribution network is not broken, it never worked from the start. We also massively over supplied in the last week of the month, so i will go around the shop today and will be culling as many mags as i can to a point of being totally ruthless. bring on direct relationships with publishers and ditch these distribution w@#$%kers.
Rick you could not have finished it off any better
I found they are not supplying as crazy as used to , a bit of improvement , but could be better .
Shaun, thank god it wasnt just me on the fishing DVD, best i have ever sold is 14, today i got 26 and same story as you with the bison/cleveland thing. As with a few others to make the comment, Nelson you must be loaded, if we didnt early return i couldnt afford to pay one distributor let alone 3. As it stands i pay a few days late now, i could send them a chq on time but it would need a house brick tied to it. I think you should re-read what Mark is saying Nelson….if it aint selling dont send it!!!!
Alan, i have sell through rates at around 76.2% for Network (non acp product) and closer to 85% for acp product and around 78.7% for Gotch. I got the allocations right by following some advice not to use supps there was some pain for 6 months but now it is terrific . i know what Mark is saying & I am offering a different view point and experience which is obviously not what this blog is about. I shall refrain from commenting in future as obvioulsy you all know best and I am just a dumb african migrant.
Jim – You stick to your bitter view of everything. I have more cash in the bank, higher net & gross profit from mags, spend less time on returns and less cash sending stock back, have terrific stock turnover and work less hours but you stick with what your doing you probably know more than me. Do your best and good luck i hope you are all successful. I am off to have a pre dinner scotch or two
Nelson well done if you are achieving 76.2% sell through rate. This would put your business in the top 5%.
I have not read anyone here calling you dumb or mocking your race.
Mark is this true about supp returns because i have never heard about it . i was always under the understanding that it was based on sales anyway .
Good bye Nelson ,to bring your race into a simple debate is rediculous who really cares where you come from or how dumb you think people think you are .enjoy all your cash and i think you may have already had a few scotches or 2 before you hopped on here
my returns rates for gotch and network roughly 50% and ndd 70% . they really take us for a ride
Shaun S – Leave your shop name on the blog and one of the distributors will review all your supplies for you – I guarantee it. Otherwise use the allocation function or better escalated contact points through each company’s website’s. I did and had contact requesting what i wanted for each title. Yes some supplies changed over time but my business was all the better for it. I know there is a broader issue to this but it certainly helped my cash flow.
As a bit of inside info I asked a publisher who shall remain name-less re the distributors cash grab at end of month. He revealed that publishers distribution schedules drive when a title is put to market, not the other way round. The reason they do it is in relation to their payments on their print deals. I didn’t get the full gist of what he was saying, but he did say it was an archaic practice and many realised the detrimental effect on sales by putting a title on-sale at the end of the month. Many publishers have also sold so much advertising that sales matter little in the equation – Others on a circ model – The difference in print cost between say 10K copies and 20K copies is insignificant – They take the punt on additional sales from the higher print run which surpasses the marginal print cost increase..
Shaun it is based on sales.