Bauer media yesterday sent a flyer and an agreement to newsagents for a Mother’s Day consumer promotion and an on-going Promote and Profit campaign.
While the key pitch of Profit and Promote is an opportunity to earn 50% bonus commission, the agreement Bauer wants newsagents to sign says the 50% bonus commission will be paid on incremental sales – sales in the retail store (not subs) above a sales target. The sales target is to be set by Bauer.
So, if your sales are $1,000 and your sales target is $1,200 and you sell $1,500, you get 50% bonus commission on $300.
With the average newsagency reporting magazine sales decline of between 6% and 9% year on year, any sales target should reflects and not have a base of greater sales than being achieved today.
The Bauer material says you will receive individual stretch targets based on historical sales. If done properly it should be a forecast based on year on year trend. i.e. if you are declining it should be reflected in your target. That targets have not been sent with the document means newsagents do not have enough information to sign the agreement.
I am all for incentive programs. However, they must be easily understood, have realistic goals and reflect current conditions. The documentation as presented for Profit and Promote is too complex and has too many unknowns for active newsagent engagement in my view. I’d love others to share their views here.
Mark, my comments relate to the sub agent component. Our sub agents which consist of other newsagents, Servos and milkbars have had a poor year with magazine sales. It suits us that they are not included in any targets. I suspect magazine sales are declining in subbies at a faster rate than in Newsagencies.
CRaigL, I dont have any subbies but I do know of agents who have picked up subbies from other agents and have helped them grow magazine sales. Because the old agent didnt supply properly or because they just didnt care less about growing mag sales for them these subbies have suffered. Enter an agent who works hard with the subby to help them grow and you have incremental sales, why should those sales not be included?
I would have thought that “all” growth was important.
I agree Al. It should be all in. rewards for newsagents taking care of the whole of their magazine business.
How do they know what you are suppling subbies anyway ?
It’s in the XchangeIT data. has been for many years.
We have a sub agent who was a big “authorised” newsagent, actually getting out of mags totally. They are that stressed you can’t talk to them. Another sub news selling very little mags. Servos along the Hume Highway who once sold a large amount of trading and male focused mags hardly selling a mag. Plannograms that ignore what operators and customers want but meet some head office negotiated deal. Milk bars that struggle to sell milk and bread let alone mags. I even know of a reasonable sized distribution only agent who tries not to provide mags to subs at all. The money being in the quick and easy newspapers. We do spend a huge effort on subbies, but in our part of the world with changing community demographics and buyer behaviours the demand is less. There won’t be many milkbars around in a few years.
It is horses for courses. In our case non inclusion of subs in targets works.
Ahh Xchangit data , so it does have a use
Who’s going to look after the business while the winning newsagent is enjoying their trip to Paris? LOL