As promised a few days ago, here are my thoughts on how newsagents can act on the supply of calendars by magazine distributors where we have little or no control on supply and where margins are considerably lower than what we can achieve ourselves through direct relationships.
If you have been supplied calendars that you do not want and are facing costs associated with storage and return, you could consider bringing the matter before an appropriate authority for review. However, before you start, think about what outcome you want – what is your core issue.
It is one thing to think a situation is unfair and another entirely to have proof to support your complaint. If you do not have proof that will stand up to scrutiny there is no point is pursuing the matter.
Read the contract you signed with the magazine distributor you are contemplating acting against – read what you agreed to.
PREPARE YOUR CASE. Have you been oversupplied? Have you been supplied stock when you previously said no? What do you want? What outcome are you seeking? A registrar, mediator or judge will want you to be clear in articulating what you want. So, if you are being oversupplied, what do you want?
I can imaging a complain being that the supply model makes your business uncompetitive as it forces on you costs that detract from the more efficient and profitable running of your business.
MOUNTING YOUR CASE. Where you make your complaint will differ from state and territory to state and territory. My suggestion is to start with an entry level forum like a Small Business Commissioner. In Victoria I have used the office of the SBC to resolve a several issues. It’s inexpensive and informal. It also shows the other side that you are serious about resolving the dispute. Also, it can be a reasonable precursor to more formal action of the matter is not resolved.
Here are the entry point places where I’d mount an initial complaint for mediation / resolution by state:
Don’t rush to make the complaint. Make sure you have your evidence, that you know what you want as an outcome and what you will do if mediation fails.
I’d be glad to help any newsagent through this process. Mounting an ill prepared, undocumented and emotion-charged case will not help those involved nor the channel more widely.
Each case will be unique. It needs to be from you, in your own words, speaking to your situation. Merely lodging a complaint will pressure the magazine distributor involved to be present for a mediation in your state. In some jurisdictions the numbers of complaints against companies are noted in reported to parliament.
SO, WHAT DO YOU WANT? You never go into any legal or quasi-legal fight without knowing for certain what you want. When it comes to calendar supply, I suggest that newsagents want one or more of:
- Absolute control over what calendars they are sent.
- Trading terms that are competitive with other calendar suppliers.
- No cost of returning unsold stock.
- Mutual respect in supply and return management.
REMEMBER. You will need to be prepared to sit across the table from people better resourced and probably more articulate than you. You will need to have a thick hide and be prepared for them to play the person and not the issue. You will need to be prepared to be public about your fight so that other newsagents can support you.
Here are some questions and answers:
Why should individual newsagents mount their case? My experience in business is that authorities are more likely to listen to complaints from individuals.
The distributors are bigger? For decades newsagents have felt and acted helpless. One day someone will act and show the way forward.
Will government care? The organisations I suggest in this post have been established by governments to provide low cost and structured places where disputes like these can be resolved.
What if publishers hate me? Who cares? They are part of the magazine distribution process and play a role in oversupply.
I am too small why should I do this? If you do suffer from calendar oversupply and complain about it, you need to have the guts to act on your complaint or stop complaining.
How can the magazine distributors Gotch and Network avoid this? Stop calendar oversupplying. It’s a behaviour they knowingly engage in. This is my preferred outcome – that they voluntarily supply based on what I ask for.
Why have the associations not done this? You’d need to ask them. Magazine / calendar oversupply is the issue newsagents rate as the most important they currently face.
FOOTNOTE: I will help any newsagent as much as I can to deal with magazine oversupply. Call me on 0418 321 338 or email me.
I’ve heard from several newsagents about the Paper Pocket branded journals received today from Network Services. These are from Universal Magazines. They are part of the calendar offer newsagents were given the opportunity to opt out of. Billing is delayed. While they are 33% margin, that’s short of where they need to be to be interesting to many newsagents. I have suggested to Universal that instead of opt out, they go with opt in. They are reviewing distribution plans for next year.
