The continuing decline in overall magazine sales has led to another publisher responding in an effort to get the attention of newsagents. Express Publications last week announced better margin and a reduced on-sale period for their titles in newsagencies. The move will see newsagents achieve 30% margin for some Express titles and 32.5% for other titles. This is a significant move from the usual 25% margin for magazines.
While I welcome the move, Express has not addressed the issue of bagged magazines (and the high retail space cost they represent), the expense of full copy returns or the desire among newsagents for a fair sell through target.
I would like Express to reduce their reliance on bagged product, eliminate full copy returns and set a minimum target sell through rate of 60% with a payment to newsagents if a title does not achieve the target.
Express could reasonably respond that they cannot afford to make these extra moves. The challenge is that newsagents cannot continue to carry the cost of full copy returns or a sell through rate of less than 60%.
Express also announced the new position of Director of Circulation. They devalued this good news by hiding contact behind a generic email address. Any company serious about customer service makes access to a real and named person easy by publishing direct contact numbers and a direct contact email address. This could be easily fixed.
If Express made contact easier and more personal and addressed the other points I have noted they would win wild applause and support newsagents. They could expect their titles to receive special treatment and greater sales as a result.
I welcome the move , small steps are better than no steps at all . Bagged or full returns should not be an issue if they sell .early on sale and only 4 week on sale are all pluses in my book .
Now Express have to work on the ridiculously cheap subscription offers that they are using the newsagency channel to promote. They can afford to pay a higher margin if they are prepared to sell a $9.95 RRP magazine for $3.95 on subscription. Or if you want 60% margin on the sales of Express titles buy most of your shop stock on subscription!
We are now looking at doing this ,just counting the numbers at this time we have done this before ,the offer from express is to good to miss I would like to see large numbers of agents doing this .Time to play them at their own game
I do believe that this blog and the participation from contributors have had something to do with these decisions, of course sales have also driven these decisions.
Congratulations Mark –
Subscriptions- It is such a kick in the Kahunas and totally imbalanced. Yes you are correct.
Must do away with these bagged products & they must turn to top only returns.
Yes, I believe Express probably think not much from these posts, the truth hurts sometimes and although they do have great magazines, it is until a total reform of how they treat newsagents that they will regain a solid foundation and Newsagents will I am sure respond by being reciprical and push their products.
Great work and I do hope to see communication by Express about these changes, should not have to read on this blog about everything..
3 FREE copies of all their mags plus DVDs.
on offer.
http://caravanersforum.com/viewtopic.php?f=9&t=19309&hilit=simon
sambob (Simon Baylis) is apparently the C@MH Editor.
Derek there was an email a few days ago about it ,not sure what day but it was before it was on here .
Thanks Shaun
I have not received one from Network for quite sometime. Will rectify.
Great to see contributors posting on this subject, human nature just to whinge and get 30 or 40 posts on a negative post but when something good happens their is hardly a murmur.
Lance, I believe that any distributor or publisher that clearly oversupplies me has consented to those oversupplied copies being returned as topped. If they are stupid enough to waste their money on freight sending the oversupplied copies to me does not mean that I have to be stupid enough to spend my money on freight sending them back. If they oversupply they risk not getting them back in a saleable format. These are my ‘business rules’!
Just to clarify I am now on ‘tops’ for all my returns but I used the above rule before I was granted ‘tops’ only returns.
Whoo Hoo!
EMG have sent an email saying tops only returns from November 1st. Kudos to them!
Just to put the extra margin into perspective, a 5% is more than some may appreciate it to be. It is equivelant to a minimum 20% growth is sales for these titles and if we do the right thing by EMG and increase sales it is much more again. Lets show them our support, they deserve it.
The more newsagents embrace the more notice other publishers will take.
It is totally wrong that newsagents are being used to promote ridiculously cheap subscriptions whilst selling magazines for publishers
Not at our store most seem to fall out