The service that collected our magazine returns has cut back and now picks up only once a month. They say they may stop altogether because they don’t make enough from providing the service.
Magazine returns are a high cost for us, for those newsagents who have to send back full copies.
The photo shows some of the current returns boxed up waiting for collection at the end of the month.
Since I had no control over supply it is unreasonable I have to carry the storage cost and freight cost of these returns. But I knew that going into the business so I shouldn’t complain – except that magazine publishers have brought on competitors who don’t have to do returns, who don’t have the stage and freight cost.
It is time those of us doing full copy returns tapped into the benefits of the many newsagents already exempt from full copy returns.
The business where I took the photo has no store room. It is in a Westfield mall with a high cost of space. The returns take up space that could otherwise be earning income. Opportunity cost is a factor.
Unless I have absolute control over magazine returns I should not have to send this failed to sell product back.
This system is horribly out of date. It places newsagents at a disadvantage to other retailers brought on to compete with us. Unless it changes soon I suspect more newsagents will stop seeing magazines.
There should be no returns – period (except Partworks) for any store trading electronically with GG.
The story that physical returns are required as proof of sales is out dated as all checks can be done via the data supplied.
I think newsagents should be able to qualify for this returns practice by having compliant data that all tallies and balances, and if discrepancies start to appear then they go back to physical returns. However the honest majority should not continue to be held back by the fear that the dishonest few will rort the system.
But if you dont have newsagents doing physical returns, there wont be any stock of old issues to send out to newsagents as part of special offers and things (things that Mark has complained about on here before)
Yet another good reason for tops only returns
Things are so close to tipping point now. I closed IPS account last year and have been dropping pockets of mags every year. Five years ago we were at 600 pockets, we now stand at 280 pockets and I’m currently considering a fit out next winter and completely rid myself of mags. Brings a smile to my face just thinking about it!
Jon for magazines to be a destination you need to stock around 600 titles in my opinion. By all means run with no magazines – but you will need good traffic drivers to deliver other valuable traffic.
Jon, the publishers deliberately oversupply, so they could just not send out the magazines they intend to use later as special offers. When any business finds it more profitable to generate huge wastage rather than minimal wastage something really bad is happening. This has been happening in our industry decade after decade and through many cycles of management; so there’s something peculiar going on. I know newsagents are paying for this seemingly absurd situation and I suspect small publishers are as well.