I am frustrated by the number of bagged discount weekly magazine packs we are getting from ACP. What started as a trial in 2009 now appears to be core part of their business plan.
While I understand that ACP would say that they are only sticking with selling discounted current issue magazines because they sell, I am yet to see data indicating that this move is financially rewarding for newsagents.
Think about it. These discount magazine packs are an additional title for us to carry. This means that we need to find additional retail space. Unlike other retailers, newsagents are not paid for space allocated regardless of sales. I make that point to all publishers, not just ACP. Further, There is no in-store strategy – not that I have heard at least. We get the stock and do with it what we will. This means it is often put on the shelf next to the regular prices issue – Woman’s Day in the case of the discount magazine pack in the photo.
My other concern, which I have expressed several to representatives of ACP, is that these discount current issue magazine packs educate shoppers to not pay full price for magazines. I can understand a reward for above average loyalty – I offer this with my Magazine Club Card – but these discount magazine packs are not about that. To me, they appear to be an attempt to prop up sales of a weak title … NW in the case of this week’s pack with Woman’s Day at the front.
I am concerned that ACP, and other publishers who try and sell on price ahead of content (the packs are sealed after all) will not be able to stop the strategy and that newsagents will be forever left with lower margin sales. Yes, a sale where there would have been one is better than no margin at all. I get that. However, what about where we get a lower margin where we would have sold both anyway? What about others who feel the need to go down price over content?
I’d like to see newsagents represented when these strategies are debated as they have a cost to the retail channel which I suspect is overlooked by publishers during such discussions.
Maybe there is more to this than I have considered. Maybe discounted current issue weekly magazines are good for newsagents. Maybe newsagents like them. The door for debate here is open, come and weigh in…
We do not get bagged mags. Perhaps the best you can do is separate out the mags and sell separately. Why discount? It educates the public to buy at a lower price. I buy my coke for resale from coles woolies or IGA when they discount. There is no loyalty to the organisation selling the item only to the manufacturer. They in turn are receiving a lower price than perhaps they need to.
$1 greeting cards are another silly item. Sell $2 cards. Sell 90% of the volume at $1profit rather than 50c.
Wrap sell for $1.50 for $1 profit rather than 50c. Lets get smarter. Having a RRP printed on the item sets our margins. look for products without a RRP and set your own margin.
I disagree! I think the bagged mags are great, we always sell out by the weekend with no effect on our weekly sales. Our Newsagency is directly opposite Woolworths and they are always offering something free with there weekly mags! So it is nice to get back some of our customers with something a little bit cheaper.