Returning unsold magazines for credit ahead of the distributor-set recall date is important for managing space and cash-flow in a newsagency business.
Early returning would be less necessary if magazine distributors supplied more closely to what newsagents actually sell and if they did not load new titles without newsagent permission. Yes, the failure of the magazine distribution system requires that we early return.
Here is how I approach early returns.
- Gross oversupply is dealt with on the day of arrival. This would be where we have received four or five times what we could reasonably sell.
- I review the magazine shelves myself outside of the arrival process – checking title placement and looking for early return opportunities.
- The magazine label is crucial as it shows arrival date and quantity received. I focus on titles that have been on the shelves two or three weeks and more.
- If we have more than 60% of stock left I consider the title for early return. We’re in a shopping centre and need a sell-through of 60% to break even on magazines and if we’ve sold 40% or less in three weeks then the title is not achieving what we need.
- Sometimes I will early return everything supplied and other times I will early return some stock. It depends on space needs and sales to date.
- Whether I early return is a decision made on the day taking into account these factors. I try and not be swayed by overall distributor behaviour. I don’t seek to use early returns as retribution.
- If we have sold more than 75% of a title and there are weeks for it to run we will consider ordering more stock.
So, early returning is not black and white. I see it as a senior management function that requires careful attention to the opportunities of each title and the needs of the newsagency business.
I have been working with a newsagency recently where they did not early return at all. This business has been losing a considerable sum of money in part because of gross oversupply of magazines. My implementing a structured and considered early return process we have stemmed the losses and made magazines financially appealing to the business again.
I am confident that there are upside opportunities with magazines. It’s unfortunate that we continue to be oversupplied in a way that forces us to waste time on early returning instead of investing time in growth opportunities.
All very good points Mark. The most crucial point for my store is SPACE. Anything older than 4 weeks gets the chop but as we recieve more and more titles I am starting to think 3 weeks might be more likely. I do like your point also about not returning for retribution, if anybody is early returning in anger then they are probably costing themselves some lost sales.
I agree it is a senior management function. I don’t like my staff early returning in case I lose sales, it’s my money so I like to make the decision.
Staff input is important though as they know of customers who regularly chase magazines that I may think won’t sell.
Apart from overseas mags that never sell I think its best to put most magazines out then early return. Sometimes we are surprised what customers buy.
I put just about everything out ,except those with no sales history at all and then I do a massive early return at the end of the month , also any new crossword tittles from overseas do not make it on the shelf .
Likewise shauns – I figure if I am not going to get a credit until month end then I might as well try and sell everything I can. You never know, you might get lucky and find someone who actually likes the crap they send.
BUT! look out this Tuesday – it’s magazine massacre and the shop will be awash with white space (until Thursday when the avalanche starts again)!
I would love a management person from NDC to wander in on Wednesday!
How is everyone treating the second issue of Elle? We only sold 5 of issue one so have already early returned 5 of the 14 to be supplied tomorrow. I figure almost doubling the first issues sales is still optimistic.
Why so many Elle but only 5 Australian Vogue last week. Sold out in 2 days and no more stock available.
They gave this issue so much publicity yet they sent us half of what we would normally receive.
Surely it can’t be that difficult to get it right!
All of Elle #2will be early return
Bauer will argue that they didn’t have sales data when they set the print run for issue #2. I’d argue that they would have had two, maybe three, weeks of data when setting scale our for issue #2. It’s disappointing to see that they have not used this data.
Just one or two weeks of sales data would give a reasonable indication of projected sales.
I think most stores would expect some small level of oversupply for the second issue and not begrudge the publisher for it. However when the oversupply is so large and the data so obviously ignored it does nothing to foster a good relationship with the people selling the product.
ELLE didn’t arrive anyway missing in action
They reckon they can base SBR on a few days sales so there is no excuse
same old, same old, never expected anything different
We were (for us) savage on returns on Sunday with many empty pockets which we filled by water falling titles where ever we could. I was worried that we had been too enthusiastic with returns but felt that we had kept relevant titles, the result today – sales of magazines up 11.52% on the past 10 weeks average so I’m satisfied that we got it pretty right and it also shows how oversupplied we are by the distributors.
Brendan, I was a couple of days late with the GG account but told them in advance that was going to be the case. i was told that they couldnt gaurantee my supply. Long story short, no problems either way, account paid and no disruption to supply. I got to thinking though that I shouldnt take that chance for next month……..WOW I HAD A CLEAN OUT TODAY. Nothing on my shelves older than 3 weeks in most cases. I`m predicting good sales too this week. My shelves look FANTASTIC !
I too am having a cleanout. But early returns such as “How to run a marathon” which arrives at end of month and is probably over supplied anyway has no place on my shelves. if they want me to try a title such as this then send at beginning of month or delay bill. what a waste of the publishers money when the top gets ripped off and it hasnt even been on the shelf.alsea
We early return the obvious oversupplies on the day they arrive. New mags get put on the shelves to try unless they are obvious non sellers (like the gay lifestyle magazines, nudist mags; we’re a small country town with some narrow minded people; yet more international sudoku mags etc)
The sunday before the end of the month I spend going over the shelves and early returning anything over 3 weeks old, unless it has got sell thru potential.