Losing money on some magazines
This issue of Your Toddler magazine arrived on August 8 this year. It is not due to be returned until week 5 2008 which means newsagents will not see a credit until late February at the earliest. We received six copies and have sold three – generating a gross profit so far of $5.85. The cost to us in terms of real-estate and labour from hosting this title is $17.50.
Nothing new in this, it is the magazine supply model at work. Newsagents control the key asset of retail real-estate yet we are treated appallingly.
Network Services, the distributor of this title, is the first to cut newsagents if they are a day late in paying their bill yet they will gladly abuse newsagents by supplying on loss making terms as the example above shows.
This is another reason newsagents need a magazine czar who speaks for the whole channel and controls what we are supplied and the terms. Without this, companies like Network will abuse our lack of strength and disorganisation.