I have heard from several newsagents who are facing a significantly higher than expected statement value from Network Services this month.
We are still seeing the impact of titles acquired from NDD, more than half of which have an utterly abysmal sell through – considerably below 50% for many of the titles.
We are also seeing an impact from delayed billing.I am told that you can see delay billed invoices as they appear with a Saturday date. While I am sure that newsagents appreciate the small cash flow benefit of delayed billing, there is frustration with challenges over early returning as well as needing to track that we will be billed down the track.
My biggest concern with Network invoices is the high cost of many of the old NDD titles. NDD closed because it was not a viable business. Network picked up plenty of titles from this unviable business and continues to send then through to newsagents. Newsagents are funding Network keeping its trucks full – it is a logistics company after all and full trucks has to be their core goal.
Yes, ours is considerably higher. Our Magazine sales for last month are less than just the Network invoice without adding Gotch!!so our cash flow is again stuffed…
Mark, One of the problems is that newsagents are forced to consider their cashflow over sales. To manage your business it becomes necessary sometimes to return stock that you may have been able to sell. The distributors are unforgiving if you can’t pay and therefore in a bad sale month, magazines must be sent back early to free up cash to pay end of month accounts. This model does not help the publishers or newsagents to maximise sales.
Craig, yes, I agree. With 65% of magazine titles cash-flow negative, it has to be expected that newsagents are in a constant cash crunch for magazines.
This morning I received an SBR invoice from Network (sales based replenishment) of 7 copies of W/day. Unrequested and unrequired I checked my sales and I still had 9 on the shelf on Wednesday (sales are almost over for the week for this title).
I have a problem with a system that can and does replenish my stock because they get my edi xchangeit files daily so they can check my sales BUT THEY HAVE TERRIBLE TROUBLE REDUCING ANY MAGS THAT ARE OVERSUPPLIED.
It is a blatant cashflow grab and I agree with Craig and his comments are spot on.
This SBR system surely can be used to advantage for both parties. I mean that they should reduce immediately any product that is consistently not sold but this does not happen. No wonder we newsagents
are becoming more and more cynical.
IS MY MONEY GOING BUSH ON THIER BUDGET
Todays supply of 4WD REDESIGN & AUST 44WD GOLD LABEL V4#I are all old mags from 2007/2009.Is it a cash grab or just treating customers as suckers.With the increase in supply CASH GRAB COMES stands out All have gone in the early return box
IS MY MONEY GOING BUSH ON THIER BUDGET
Todays supply of 4WD REDESIGN & AUST 44WD GOLD LABEL V4#I are all old mags from 2007/2009.Is it a cash grab or just treating customers as suckers.With the increase in supply CASH GRAB stands out. All have gone in the early return box
*SIGH* if only we all agree to not pay them for 1 month in protest. just sell gotch for 1 month…..then vice versa
Network Jan account:
Deliveries: 5939
Credits (Returns): -4549
January sales (GG+NET) 3964
What’s wrong with this picture???
Wendy these are dreadful numbers. Use your Point of sale software to produce a sell through rates report for network titles and see how many have a sell through of less than 50%. If your newsagency is like another I have just done this for you will see that more than 50% of titles fail this reasonable barrier.
@MARK
suppose we run reports and see the list of magazines with very bad sell thru rate.
what can we do to stop it? Network’s online system won’t allow us to cancel a title if you make just 1 sale. which is think is really stupid because you might have 1 odd sale or 1 stolen copy and all of a sudden your average sale is >0%
with your help was able to get gotch down a notch.