Publishers wondering why newsagents early return need to look at this example. The data on the Network Services website shows the sales volume. The newsagent is requesting supply closer to actual sales, to limit their financial exposure. The Network website rules forbid the newsagent from doing this. This is exactly the type of evidence that ought to be submitted to the ACCC.
this is exactly the crap we have to put up with every friggin day we try to change our supply to reflect our sales.
NOT GOOD ENOUGH NETWORK
Network again …….
Pic premium Pack XIT invoice 61 copies for this Thursday
Our Pic premium Pack allocation to Subs (based on Net Sales) = 10
Why Network why?
Also note that the regular supply is 5 but their own recommended supply is 3 copies showing that they do not follow their own systems calculations.
It seems like the number one thing magazine distributors could do is to let those newsagents who actually want to manager their stock decide exactly how many copies of a magazine they want to carry. If they want zero copies, let them order zero copies. If they want 20 copies, let them order 20 copies.
I suspect distributors giving newsagents this power would ultimately benefit everyone. Distributors dont have to spend money dealing with magazines newsagents dont want and then send back. Newsagents dont have to deal with magazines they dont want and cant sell. And you dont end up with so many magazines entering the waste stream.
Mark have you heard anything about GG taking over Network ? apparently there was a story in the financial review today (which I do not get) someone mentioned it on facebook
http://www.afr.com/street-talk/bauer-to-cease-distribution-20151202-gld6b0
While I much prefer dealing with G&G than Network a monopoly probably isn’t going to be good in the long run. IPS doesn’t count.
On the flipside I’ll be looking forward to getting my Network bond back, I’d like to think it would have earned a bit of interest along the way but will probably find out the financial concerns of German billionairess’ outrank lowly newsagents.
Ah yes the bond , will it have interest on it ??
Mark, I have always been bewildered as to how it can be in the publishers self interest to so flagrantly oversupply. At least a part of the answer is to be found in the MPA’s application to the ACCC.
In Annexure C.2 of the application the publishers submit:
“…the marginal cost for a publisher of printing additional copies is low. There is therefore little incentive to publish fewer copies in a print run than might conceivably be sold. Further, there is also an economic incentive for a publisher to redistribute returned product. Further there is also an economic incentive for a publisher to redistribute returned product . For example if a title can be printed for 40c and then redistributed across the newsagency channel for a cost of 30c per copy per copy, returned and repackaged (as necessary) for another 25c and then redistributed to the same channel for another 30c, then a cover price of $3 would give scope for a publisher to profit from such a redistribution.”
Mark, if you don’t mind, while the readers are scrambling for pen, paper and calculator to figure out the implications of the above revelations for their cash flow and those of the publishers and distributors, I’ll scribble a message for them to read when they get back.
Please take the MPA’s application seriously. Read the application in full. You will be flabbergasted! Decide for yourself if it is intended teach newsagents to better sell magazines or to enshrine oversupply in a code of conduct. It is available on the ACCC website. (It is a little difficult to navigate the ACCC website; I would be happy to send you a copy, but I’m not sure if it is permitted or prudent to give my email address on the blog.)
My understanding is that any bond should accrue interest just as bond by way of bank guaranteed term deposit would. I think the banks do charge some sort of administration fee though against interest earned.
While looking forward to the return of our bond, and not being a huge fan of Networks Distribution practices, I feel we need competition at the distribution level be it a new player or an improved IPS. By and large I have found IPS to be fairly good and with a broader base they may be able to better satisfy our earlier expectations from them.
If you do a search of MPA in the top right corner of the blog you can see many posts on the MPA trial including the application and letters from me responding in detail on concerns about what is afoot with the trial.
Henry, good to see you can work it out. As you say the MPA’s plan is clearly set out in Annexure C and easily understood. The problem is the ANF only quotes Annexure B which set out the new supply rules and refuses to even have a discussion about Annexure C which clearly states the MPA’s intention to impose the new supply rules on all newsagents without alteration. The ANF continues to believe the rules are for the trial only and different supply rules will negotiated after the trial.
I’ve had my ANF state manager stand in front of me while I highlighted (with an a actual Textliner) the relevant parts of Annexure C and she refused to even look at it, yet she insisted I was wrong.
While I don’t know the qualifications of the ANF’s employees it seems that they need less spin and more analyst. Possibly move a few media/PR types out and get some people with commerce/law backgrounds.
And to anyone from the ANF reading this I would really encourage you to read the whole application with an open mind, especially Annexure C, its not hard to join the dots and get the whole picture.
One outcome from the robust representations some of us made through the process of the ACCC considering the MPA application is the gaining of attention at the highest level of magazine publishers. It was useful for them to see and hear engage newsagents contradict the ill-considered line of the ANF.
I think we will see the representations of newsagents, and not the ANF, feature on the outcome from the next phase of the MPA project.
Yes, I have had some discussions that I will not detail here. No, I am not certain of any outcome. However, I have seen a level of genuine interest shift.