This New Idea magazine subscription offer from Pacific Magazines is frustrating because of the price and frustrating because it is pitched to people who purchase the magazine in newsagencies and other retail businesses.
I am told the offer was included in the magazine last week and again this week.
The deal is 12 issues for $12 and after that each issue is priced at $2.85 billed quarterly.
With the majority of newsagency purchasers of New Idea weekly regulars, this deal would appeal to them. However, the detail in the fine print that the magazine will arrive a few days after on-sale makes the offer less appealing. But people won;t see that unless they dig. What the do see is the magazine is accessible at $1 an issue for 12 issues.
I understand the role of subscriptions in the magazine model and have often written here that they are necessary to the publisher model. However, that was when subscription offers were at 25%, 30% and 40% off retail. This offer is considerably more.
A massive 77% discount off cover price plus the value of free postage does not make sense to me. This is a US type magazine subscription offer. It feels desperate.
The offer disrespects newsagents in my opinion as we are continually told by publishers there is no room to go beyond 25% gross profit from the New Idea cover price. It is hard to accept that when you look at this deal and the costs you know that would be associated with it.
I would have preferred Pacific Magazines to come to newsagents in advance of the offer being put to consumers with an explanation for the offer, so we have an opportunity to understand any context that may be relevant to us. It is disappointing this did not happen, yet not unusual in a channel that is seeing several our long-term traditional suppliers more and more seek revenue outside our channel.
The times certainly are changing in and around our channel. Newsagents need to be actively engaged to keep up. This 77% discount off cover price for New Idea is a wake-up call to those newsagents who are yet to embrace significant change in their businesses.
While the New Idea discount of itself is not the reason to urgently embrace change, this move on top of newspaper and magazine sales declines, the growing migration of lottery sales to online, tougher competition from deep discount and other retailers and challenges around stationery and cards focuses our attention on what we can do to grow our businesses, to attract new shoppers. Snd, yes, I think there is plenty we can do.
While the New Idea move will cost my business little if any measurable GP, it damages perception and that matters.
And cynically timed to coincide with olympic pins, in which there is almost zero interest.
The content of this mag is not worth $1
It just goes to show once again the blatant lies the publisher Pacific Magazines has made if it has said it can’t afford to pass on more than 25% to newsagents.
Seven West who own Pacific returned quite nicely to profit with a first half result of about $140 million yet they can’t afford to give newsagents a fair slice but can afford to discount 77% off their cover prices (AND pay Australia Post for the Print Post postage costs of the discounted magazine) ? Total and utter lies once again. I hope their pin collection falls flat on its face and costs them lots of money. Even having them on the counter here haven’t sold a single one and after this will probably just put them back in the box and return them.
Paul……totally agree. Pins now not on counter. None sold and zero interest.
Mark, I’m sorry, but I’m gonna lay some blame on you here.
Over a long period of time you have stated that subscriptions are a necessary evil for the publisher. Content to simply put up with publisher’s offering consumers a better rate than retailers.
Are retail sales through newsagents not a necessary evil too for publisher’s? I’m betting they are more important than subscriptions…but every supplier knows they can screw newsagents…so that’s what they do.
Rather than seek additional commission for your newsXpress members, you have consistently stated that there is no extra commission available.
That is completely wrong.
Coles and Woolworths are getting better commission. NewsLink were getting better commission before being purchased by W.H Smith. Obviously W.H Smith would too be getting a better commission…..
Consumers are getting a better price than the commission received by a newsagent who pays to stock that title in its store and to return it if it does not sell.
So, why not stand up to those suppliers and say I want a better commission for the 150-200 newsXpress stores or your title comes off the shelf?
Amanda you make it should like I have permitted this or played some other role. As I say myself in my post I have been supporting of subscriptions, but not this 77% discount.
I am not about to disclose here what I negotiate for the 221 newsXpress businesses. My post here is nothing to do with newsXpress.
Do you not believe other major retailers are achieving better trading terms than Newsagents?
Some major retailers get better overall terms once you account for marketing and placement fees. But this post is not about that.
If newsagents were getting better commissions, those publishers would have to adjust what discounts they could afford to giveaway on subscriptions.
Amanda the biggest barrier to newsagents achieving a better commercial outcome is the worst operators in the channel. A smaller channel should result in better newsagents … I hope.