I’ve been talking with three publisher representatives over the last few days about counter promotions. In each case, the titles were not high volume with sales per store expected to be below 10 and often closer to 5. In each case I’ve declined the opportunity. 25% margin for a low volume title doesn’t cut it for newsagencies in shopping centres and other high-rent locations.
Magazine publishers used to ‘buy’ counter space by giving us a professional perspex unit for displaying their title. Newsagents took such units because they looked good.
Today, the world, our newsagency world, is different. We have access to counter products more than double the GP of magazines. Â Magazines have to compete with higher margin products for counter space. Publishers need to understand this.
The magazine margin issue has to change IMO. Either we go 50% and firm sale OR the publishers start to pay for the real estate allocated, the more they pay the better the placement. Rents and wages will continue to go up.
Out of interest where do you put your trading cards/stickers and the like?
In the returns box jeff 🙂
Not at the counter that’s for sure. Lower cost space nearby or with toys- it depends on the product.
Trading cards with sweets (under counter) stickers same as Jarryd
Trading cards are easy money and take up no space why would you send them back
Yep I don’t send them back but do do some counter and like Mark nearby. I sell amazing amounts of soccer, NRL and moshi type cards.. The kid pester factor seems to be at play here too on counter
cant have trading cards far from the counter due to sticky fingers
If I sold more I’d have them at the counter. Happy to bank margin dollars if the numbers work. But the magazines I have been approached about would sell only two or three copies – not enough compared to competitive products.
I do jest a little. We make an exception if the product has a very high turnover – NRL cards and the few off hits like Moshi Monsters are about it.
Having said that the space allocated is limited. There are plenty of high turnover counter lines that we can make 50-70%GP on.