There is discontent in magazine distribution and publishing businesses about the push by the distributor-controlled XchangeIT to promote the elimination of labels on magazines in newsagencies.
I am told that promoters of the plan in a distribution business see it as a means for reducing newsagent early returns. It would appear push has nothing to do with the benefits claimed by XchangeIT in their promotion to newsagents.
Given the continued oversupply of magazines to newsagents and a greater disconnect between supply arrangements for us versus our competitors, newsagents need the data on the labels so they can early return – as it is supply outside weeklies and top selling monthlies where we suffer the most.
This project by XchangeIT is a distraction. It shames those who are supporting it in distribution companies an in XchangeIT.
The only project that ought to matter is the efficient supply of magazines – based on the prospects of sale as indicated by newsagent sales data provided to the magazine distributors.
Efficiency is achieved when we are supplied close to what sells. A sell through of 50% is a failure. Sadly, many titles have a sell through of less than this.
Instead of addressing magazine supply inefficiency which makes newsagents less competitive than supermarkets, people in companies like Network Services want to make it harder for us to manage our own situation. Their actions show them serving only their own needs, needs which are not aligned to ours.
Fixing the broken magazine supply model is the issue which matters most to newsagents yet it is the issue those representing the channel have failed to deliver on for years. We have seen newsagent associations pitch the XchangeIT label project to newsagents without critical assessment.
As newsagents recently indicated at this blog in response to Newsagents: have your say about a possible fresh approach to magazine distribution they want more control over supply. The cost of the failure of XchangeIT and its controlling shareholders to deliver this disadvantages our channel and makes us uncompetitive against supermarkets, convenience stores and petrol outlets.
“The only project that ought to matter is the efficient supply of magazines – based on the prospects of sale as indicated by newsagent sales data provided to the magazine distributors”. That is not only what Newsagents would like to help improve efficiency, as a publisher of two magazine titles myself, from my perspective that is what I would also like to see. Realising this ‘over supply’ problem myself, and against my previous distributors wishes, I have reduced the supply total to a more realistic number in line with sales figures. This move from me wasn’t popular with the old distributor as they were going to lose money, and that’s what it’s all about to them, the all mighty dollar. Common sense tells me that time after time if a newsagent consistently sells 50% of what they are allocated, why continue to oversupply, why not reduce it to that sellout margin and help un-clog the shelves? Because every magazine distributed, whether it sells or not, is charged back to the publisher. I’m on your side…
Apart from the stupidity of thinking if they get rid of labels it will stop early returns-bit of a tip to the distributors only fixing your oversupply will reduce early returns- I have to ask how do they stop newsagents labelling magazines if they still wont/need to? I’ve got no idea of the technicalities of stopping XchangeIT printing labels, but if they stop them and I felt I needed labels I’d swear a lot and dig out the 2 row price gun and date them with that. Still going to have to price UK/USA titles no matter what.
My first thought on hearing this is it came from colesworth wanting the ability to track the returns date on their limited range of mags without labelling and the distributors deciding to impose it on Newsagents as well.
Xchangit does not create the labels , they are only creating the invoice file for us to arrive which needs to be done no matter what . The sticker side of things is done through the pos system ? true
So no matter what great liittle idea they come up with it hardly matters . You do what ever you wish to do and for me it is labels ,not on everything but everything I feel the need to put them on
Cancel my labels and I will not use Xchangit
My early returns are based on the same data that I send daily through XChangeIT. If the mag doesn’t sell, it goes back, if there are more than reasonable numbers, they go back. We base this off the SAME DATA the distribution companies use.
One might like to ask the distributors why they choose to ignore the data. If they choose to ignore the data, why am I paying for you to read it? If you are not reading it can you please refund the 8 years of fees I have paid for you to not read it.
Shauns
Yes you are correct. The labels are created by the POS system based on the invoice data. There is NO WAY in XchangeIT can turn off a label.
Mark’s comments here relate to the fact that they would be using your access fees here to fund the development. Rather than investing the fees in helping to fix the broken supply model.
Guys
I think you’re (including Mark) are all off the track. XIT is looking for a hardware /software solution that would remove the need to sticker any Magazines -EXCEPT imported?
Any talk of cancelling early returns would be stupid on behalf of NS & G&G. If early returns was removed – 3 months notice would be given to both companies by our business. We early return to IPS and demand the credit, and tell IPS NO credit cancel account.
All XIT does is ensure file integrity and pass through details.
XIT is looking at what could be available to support Newsagents in reducing the time taken to sticker.
As many as possible need to spend the time and complete the survey – NO I don’t work for XIT!
I guess they are looking at an integrated handheld scanner with display, which once the barcode has been scanned will supply return details etc BUT also maybe allow the Newsagent to “return” the magazine at the same time.
Well that’s my take on the subject.
Could be wrong.
XIT is not the devil here – its a combination of MPA and its members who REFUSE common placement of essential details on the magazine cover.
John
John, I know what XchangeIT says is the goal, I don’t believe them or those telling them to do this.
The last thing newsagents need is more technology. The current process works in the shop floor.
The part of the magazine supply model that is broken is that part controlled by the magazine distributors. Until they fix their model which makes newsagents less competitive, every initiative pushed by them and their puppets should be rejected.
My understanding is that project is being driven by Network Services.
Guys – from XIT today …
Rest assured and contrary to reports you may have read, this is NOT a project to stop early returns. It is simply a survey to obtain your thoughts on the current labelling process to help us determine if our project can save YOU costs and materials that are currently incurred in the labelling of magazines.
John, there are those within magazine distribution who disagree, who say the project had its genesis as a mechanism for blunting early returns.