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Magazine oversupply

Inviting magazine publishers to speak up about ignorant early return behaviour

I had a discussion with Terry Thelwell of Lovatts at the NANA Newsagent of the Year Awards in Sydney last week about the poor behaviour of some newsagents in early returning magazines. Terry and I have discussed this often and the data Lovatts has of newsagents early returning to a point where they have considerably less on the shelves than their usual sales of titles.

Lovatts is not alone experiencing ill-considered early returns where newsagents deny themselves sales they would have achieved. Many publishers have told me their stories and other stories about newsagents who then call saying they need more stock – because early returns too much stock.

The purpose of this post is to open the topic for magazine publishers to share their comments about early returns. Ideally, I’d like to see specific examples of where newsagents have hurt themselves through ill-considered early returns.

This is a serious topic because it could drive a self fulfilling prophecy about magazines in newsagencies. The poor behaviour of some could ultimately see a publisher or more flee our channel.

So publishers, share your stories…

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magazine distribution

Newsagents infuriated by IPS supply of colouring books

ipscolourFairfax owned IPS has made a dreadful decision to scale out colouring books to newsagents. We can source similar quality colouring book products which will carry a 50% and more gross profit so there is no commercial sense for us to sell these titles on magazine margins.

IPS management is not responding. They need to as there are newsagents saying this move is the straw that has broken their back and they are planning on closing their IPS account.

Colouring books? Seriously?

The person who agreed to this ought to be put on notice.

To the supplier using IPS to distribute colouring books to newsagents: stop! We have excellent sources of supply of colouring books that enable jus to make 50% and more.

Using the magazine scale our model for poor margin product is wrong. Stop it.

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magazine distribution

How does the ACCC set its priorities?

mbeerThe ACCC chairman has been all over the media this week touting a victory over Maggie Beer and what the ACCC says is misleading labelling.

I don’t see how any shopper considering purchasing Maggie Beer products could have been misled. The products are conceived and developed in Maggie Beer’s kitchen in the Barossa Valley. That alone makes the labelling accurate in my view. There is no claim the products are made there.

What a waste of public money.

It surprises me that the ACCC has time and money for this yet no time or money to investigate newsagent claims that they are treated so differently by magazine distributors that it holds back our ability to be competitive against the supermarket duopoly.

Complaints I have heard of being made to the ACCC about this are met with sorry we’re not pursuing the complaint, consider civil action if you think the treatment is unfair from the ACCC. If they researched such complaints thoroughly, they would discover a magazine supply model that gives the supermarket duopoly an extraordinary competitive advantage that could ultimately disadvantage consumers.

Shame on you ACCC.

The image is from the story on the ABC website.

18 likes
Ethics

What can magazine publishers and or magazine distributors do to stop newsagents early returning magazines?

I asked this question as part of my early returns survey this past weekend. Here are all the responses – from survey participants, not me – to this question exactly as entered except for some spelling corrected. The sequence is that in which they were entered by newsagents with response #144 being the first.

Magazine publishers and distributors this is for you. Newsagents want one thing – fair supply based on sales data. That’s not hard at all. If you value us as a channel you will listen and respond.

  1. Be quicker to cancel mags.  Be quicker to provide new mags when a customer wants one. At times I have had to wait for the2nd issue and of course, by then the customer buys a subscription online.  I should be able to cancel non performing titles even if their system says I have sold 1 copy!  Big deal.  Shez – that 1 sale the person could have moved away, or anything yet I am TOLD I have to carry it for months and beyond because of 1 lousy sale!
  2. Don’t supply us with magazines we don’t need – Please check sales data ! SIMPLE !
  3. Supply quantities based on sales
  4. Not send new titles without us opting in. We are a small newsagency in a country town, we know our clientele, there are some titles that will not sell.
  5. USE SALES DATA MORE EFFECTIVELY. ALSO IPS IS RIDICULOUS ABOUT RETURNS AND SENDS IRRELEVANT MAGAZINES JUST ONE EXAMPLE IS OFFICE CONCEPT ONE OF MANY
  6. Supply reasonable quantities
  7. Stop sending crap that doesn’t sell and start using xchangeit for what it was designed for. I done see why I should become their banker and warehouse.
  8. Supply amounts using far more up to date sales data
  9. Invoice me for sales per my POS/XchangeIT systems and eliminate returns entirely.
  10. Stop sending so much rubbish!!!
  11. Stop over supply
  12. I know what i want so let me set my own titles and amounts. It is that easy!
  13. Trust us to set our own supply quantities
  14. Start using their sales data in a constructive way
  15. Start using the data from XchangeIT that they insist we provide them
  16. Stop over supplying.
  17. I WILL CONTINUE TO EARLY RETURN AS IT ALLOWS US TO RESPOND QUICKLY TO CHANGES IN CUSTOMER TRAFFIC IE SCHOOL HOLIDAYS, LOCAL FESTIVALS REQUIRE MORE STOCK , SUMMER MONTHS, QUIET PERIODS REQUIRE MUCH LESS. WITHOUT EARLY RETURNS THERE IS A LARGE FLUCTUATION IN MAGAZINE BILLS WHICH MAKES CASH FLOW MANAGEMENT DIFFICULT
  18. Use the sales data they make us pay to give them properly
  19. Get serious about sales data! I am sick and tired of this massive oversupply issue; particularly when my sales data clearly shows what i need.
  20. Stop over supplying
  21. Supply sensible quantities …. Not have two or more issues expected to be on sale at any time ie in motoring and craftwork… work with us not against us
  22. Send the right amount. Send at beginning of month. Use SBR correctly. Ensure magazines aren’t to thick. Do not add FREE mags and ridiculous giveaways that cant be placed on the shelf.
  23. DON’T OVERSUPPLY. ALLOW ME TO SET MY SUPPLY AND GIVE ME AN OPTION TO RECEIVE NEW TITLES NOT JUST DUMP THEM ON ME.
  24. Consult with us & allow us to select titles.
  25. SUPPLY BASED ON PREVIOUS SALES
  26. Allow newsagents that are keen to build their business make these important decisions.  If a newsagent has registered  (at cost!) to XchangeIT then charge us for what we sell.  No need to process returns  must be some recognition for newsagents who are compliant and try hard!!!!
  27. Use our sales data
  28. Delay billing for all on sale period, select the titles and qty ourselves
  29. Send me 1.5 times my average sale and no more.
  30. Allow 60 days trading terms.
  31. Correct use of my sales data
  32. Use the data that is supplied to get it RIGHT!
  33. I want the titles I sell in the volumes I sell plus a few extra, with the ability to adjust these figures up and down based on MY needs.  The day we get fair control over the stock we receive and therefore become liable for is the day we can concentrate on selling, rather than managing, the stock we receive.  Sadly, I dont believe we will ever see magazine supply on a basis that is fair to newsagents.
  34. Stop over supplying so I can give new titles the attention they need..  Dismantle distributors and replace with on-line software and new distribution centre based on standing orders and orders placed by newsagencies..  Perhaps a pilot
  35. Stop sending us magazines that records show don’t sell. Stop sending us summer quantities in winter.(We are coastal).Unfortunately they also do vice versa
  36. Manage supply using sales data and take notice of my supply changes.
  37. Timing of supply is a factor.  If we are oversupplied on the last delivery day of the month titles risk being returned for cash flow reasons.
  38. Do not send plenty different magazines in same categories.
  39. Current system suits me so long as I retain the choice to early return.
  40. use the data we send them DAILY to set realistic supply levels. We are evolving and adapting, I see no evidence they are adjusting their behavior. While we are paid on sales and them on distribution – why would they?
  41. I also early return magazines that:    Have just been replaced by the new issue but still have a return date 3 weeks (or more) in the future.    Are redistributions of previously issued titles that sold poorly the first (or second, or more) time around.
  42. Supply more appropriately according to my sales history and the size of my magazine space, not how much you have in the warehouse.
  43. USE THE AVERAGE SALES DATA THEY COLLECT
  44. Don’t oversupply and don’t send me titles my business has no interest in
  45. Use the data supplied through XchangeIT to determine quantities.
  46. Look at past Sales figures.   Don’t send new tittles unless requested. Tell us about them but don’t send them.
  47. Use sales data for allocation decisions.
  48. All new titles or new to store must be approved and quantity set by retailer otherwise face high chance if early return.
  49. Look at the data we send them everyday….simple. Or let us set our own standing orders without change ie. Take 5 unless we change it due to seasons etc. We all know how many of the weekly and main monthly titles we need.
  50. Supply levels which accurately reflect historical sales
  51. Treat us equally
  52. Give us control of what we want in our shop.
  53. Align allocations to sales.
  54. Stop sending totally unsuitable speculative titles and oversupplying regular titles.
  55. Provide sensible quantities of titles in line with actual sales. Be mindful of our stores geographical location when allocating titles.
  56. Ask if I’m interesting in new titles or trying different titles ask how many I require
  57. Increase margin to 45 %
  58. Stop sending us a ridiculous amount of stock. At least 60% of magazines we receive are returned unsold.
  59. Allow us actual control over our supplies. We don’t mind extras of certain titles as id rather have more then not enough. But not on every single title, If i sell 1 magazine of a certain title for 20 issues in a row, odds are I’m not going to sell the 12 I’m sent this month.
  60. stop sending mags just because they can, trying to wear you down
  61. Allow their websites to reduce qtys to zero. Stop dumping irrelevant titles. Dont restart titles we have stopped.
  62. base supply on actual usage plus a small margin, part series are the direct opposite problem. Too few after parts 1 & 2.
  63. Realise that for both parties to optimise sales they must treat us as equals. No one likes being stood over and bullied, especially by BOOFHEADS.
  64. Do not oversupply, use sales data to send more when only a few left, eg scoop homes annual and in particular wedding titles, AFL albums etc  Do not redistribute titles that did not work previously particularly with old stickers in bad condition  Delay all billing so we are charged once we sell the title (say on all monthlies +) just a thought…  Check before supplying a new title, don’t over supply new titles  I’d like to see decent stands supplied to position mags at front of store for the greater good of magazine health.   Should have a loyalty program solution at the individual newsagency level rather than at the channel level (a bit off point)
  65. Take notice of their precious data.
  66. Give us the appropriate amount of magazines based on sales data. For sales of non weeklies 0-6 1 extra, 7-12 2 extra. Delayed billing – if it is not going to sell, no point keeping it.
  67. Convert to consignment stock ie only pay for what we sell
  68. SUPPLY = SALES = DATA SUPPLIED
  69. Examine the sells data!
  70. Let me control supply
  71. Use previous sales figures and allocate accordingly
  72. Make supply based on sales
  73. Let me set my supply and if we sell out give us the OPTION to increase supply. ALL FOREIGN titles should only be added to supply after prior advice from the distributor and us accepting and setting quantities. Recent example a $22 American Grid Iron magazine that will not sell for us and we would have refused supply if given the opportunity but instead immediately returned it.
  74. Reasonable supply, intelligent use of SBR, don’t be afraid to sell out.
  75. Look at the sales data they have and don’t continue to supply if there are no sales
  76. Stop oversupplying magazines. As simple as that. Let me set my own supply and title ranging and stick to it. When my monthly returns are equivalent to 60% of what I receive, particularly from Bauer, then something is very very wrong.
  77. Supply realistic quantities by using the data available to them.
  78. Send more of the title we sell and over stocking us with titles that don’t sell
  79. No redistributions of old titles that look like they have come out of a rubbish bin.
  80. Supply quantities that reflect sales history.  Stop supplying irrelevant titles.  Stop delayed billing. Supply should reflect saleability of a title
  81. Use historic sales figures to determine supply numbers.  For new titles, look at how the category is performing in my outlet, and send numbers accordingly.
  82. I am a Distribution only Newsagent in SA  Simple –   1. Allow me to choose the titles and supply, with intervention only if too many returns.  2. Stop the non-sense of putting allocations back to an over-supply situation after so many weeks.  3. Cancellation of a title by myself means cancellation, not re-instatement a few months later as diarised by suppliers software system.  4. Stop the non-sense of re-instating a previously cancelled title on a 1 of basis so that when I go into your web-site to re-cancel, I don’t find that supply is zero after a one of allocation of a big number for one month only.  5. Please respect the amount of time I put into (constantly) amending allocations on your web-sites by honoring the supply figures I record there, until I make further amendments not you.  6. I am not in the slightest bit interested in delayed billing and will only consider putting new titles into Sub-agents if they fit the demographics or I consider there is the chance of a sale. We are not in the business of wall-papering Sub-agent shops for a loss-making situation that produces only expenses and no income. Seriously, don’t you get that!  7. Finally, I would like you to accept the fact that your Distribution Model is broken. Until you can do that you must accept our business relationship is somewhat at odds.     Dennis Robertson
  83. Give us better control over the allocations & the ability to order or delete titles as needed online.  The wastage of magazines and the time and rescores that goes into this part of the business is making it unprofitable!
  84. Do not over supply and send magazines that will not sell in my shop
  85. Reduce the on-sale period – No magazine needs to be onsale for more than 1 month. Don’t send massive amounts of stock at the end of the month. Don’t add new titles which have no relevance to my store because I have cancelled other titles. Realise that if I have 1200 pockets, I don’t need 1200 titles from both distributors. Listen to my allocation changes that I enter online – I do this because I know that I can sell more/less of the titles that I change, not because I have nothing better to do. Give me more control over allocations,
  86. Do not oversupply
  87. I would like to totally revamp my magazines.  Despite cancelling non performing magazines – they keep coming and they reduce my weeklies to a couple of copies. They deleted Take 5 altogether and then took 2 weeks to re-instate it.  How does this happen in todays technological world.  They sure as hell, can put my supplies on stop within the hour if I don’t pay by the 24TH!  I have to get GG to reset my minimum order of individual mags to 1 as a small store the minimum set is currently 3!  I want to be able to set a standard order for my mags ea month as I would buying product from any other supplier.
  88. TRADING TERMS NEED TO BE LOOKED AT IN THE LIGHT OF WHAT APPEARS TO BE DIFFICULT ECONOMIC TIMES FOR MAGAZINES
  89. SALES HISTORY FROM XCHANGE IT NEEDS TO BE CONSIDERED
  90. Use sales data/
  91. Don’t over supply, us our supplied data.
  92. Take notice of our sales data and give us the opportunity of both selection of title and amount to receive
  93. DO THE RIGHT THING
  94. Better target magazine titles and allocations.
  95. TAKE MORE NOTICE OF SALES HISTORY AND ALLOCATION REQUESTS
  96. Not over supply, ask if want new titles and supply quantity on offs.
  97. They should be rewarded by the number of mags that are sold, not the number that are distributed.  In other words, be motivated to install an effective supply process that feeds real or accurately- projected demand
  98. Use the data we send to manage numbers
  99. Supply the quantity I usually sell rather than 50% extra
  100. GIVE US THE CUSTOMER THE RIGHT TO ORDER WHAT WE WANT.
  101. Allow us to set the orders and quantities we want. Say once a month fill out online order form and submit.
  102. To not oversupply and use up our cash-flow as times are tough now for us.  To sensibly manage our supply and returns data, for eg currently if I happen to finally sell 1 obscure title, the next supply become 4 copies.  Also the supply can be too sensitive in that if a popular title doesn’t sell as much this month, the next month’s supply is cut right down.
  103. Stop sending so many titles from US and England, a lot of these sell but a lot more don’t sell and they cost a fortune in labour to process.  Ditch delayed billing it just pisses me off! Sorry but its not the money its the space and its usually for magazines that don’t sell well for me eg political novels and weddings magazines.
  104. Distributors need to use their magazine sales data to delivery both me and the publishers a better bottom line. Not just gross oversupply.
  105. Be more realistic about the amount of stock that we are actually likely to sell. Also I do like that we get replenishment stock if we are getting close to selling out of a title but it is useless receiving replenishment stock on the day it is due to come off the shelf and be returned.
  106. They could actually use the sales data we’re paying XIT to send to them so supply is better targeted.
  107. Monitor sales and allocate accordingly
  108. Reduce oversupply  Be more responsive to supply requests  Ask before sending new magazines
  109. Respect my changes to standing orders
  110. Use sales data to supply correctly, use sales data to top up if sales exceed expectations, stop sending me obscure titles that do not suit my demographic, stop doubling up on specialist titles (how many Soduko magazines do I really need?).
  111. DISTRIBUTE BASED ON ACCURATE SALES DATA THEY GET FROM XCHANGEIT
  112. PAY A BIGGER % COMMISSION FOR TIME SPENT ON SHELVES MAYBE 20% WEEKLIES 25% MONTHLY’S 35% BI-MONTHLIES 45% 1/4’S 55% LONGER TERM OR SPACE RENT
  113. NOT OVER SUPPLY
  114. take heed of ordering when it occurs rather than do as you please
  115. Stop increasing supply contrary to sales data.  Stop supplying well in excess of normal sales just because of delayed billing.
  116. Stop sending magazines we never sell, or at least in the quantity they supply us
  117. Use the numbers supplied via XIT
  118. USE THE SALES DATA AND SET SUPPLY ACCORDINGLY AND STOP USING NEWSAGENTS AS A DUMPING GROUND
  119. Reduce the volume to something more like what we could reasonably sell. If it sells we can order more. Efficient reorder process. It can be done. We are not the warehouse or distribution centre for the publisher but are treated as such. If it sits in the distributors warehouse the publisher is going to hear about it very quickly.
  120. They can stop sending us magazines that they know, and we know, won’t get sold. Each newsagent should have a contractually agreed core range with a contractually agreed volume allocation. If they want to send us non core product they should offer to us before sending. THis should be our ad hoc decision. Equally if we want to trial a title outside of the core range we should enter into a trial period inclusion in the core range.
  121. Supply what I need – plus one more copy
  122. Understand how many pockets each newsagent has available for mags and supply only enough titles to fill those.
  123. Increase commission..
  124. Get the supply correct.
  125. Use my sales data correctly to manage supply.
  126. manage allocations from past sales and send new publication supply based on sales of similar mags.
  127. Send me an allocation relative to my sales
  128. 50 YEARS AS ANEWSGAENT NO CHANGE MARGIN FOR WORK TODAY IS TO LOW TO SPEND THE TIME ETC   GG NETWORK SYSYTEM OK  TIME AMD WORK LOAD CHECKING ACCOUNTS RETURNS ETC BIG PROBLEM NO MARGIN  JOHN KLEMM MILDURA
  129. Stop over supply, let us have a say on supply of new titles, let us set our own supply.
  130. Allow us to control our supply
  131. Network sole existence is to leech off my cash flow.  After 14 years I have come to the conclusion they have no interest in my welfare or business, similar to a couple of other so called “business partners”. The Gotch supply modal is workable.   regards
  132. Stop gross oversupply; where is Nana and ANF – haven’t seen or spoken to anyone there for  years; no one comes to us;last two times I had an issue I contacted both and never had anyone come back to me; ive never had a problem early returning.  I review ever item of expected magazines prior to  receipt of stock coming.  All marked and simply  send back easily when receiving the mags    Hope this this is useful information for you    tks Carollyne, Cessnock Plaza Newsagency   johnchalmers@bigpond.com
  133. Ask me first
  134. Use sales history.
  135. set correct orders no over supply no new tittles unless they have asked permission
  136. Give reasonable supply for titles based on sales (I send data), use SBT only when sales warrant a top up, and automatically delete titles with 0 sales after 3 issues.
  137. Stop oversupplying titles.
  138. let me set supply of mags and change supply after 2 copies of new mags and leave supply at what i change it too
  139. SUPPLY BASED ON OUR SALES DATA, & GIVING US CONTROL OF SOME OF THE TITLES WE SELL
  140. STOP SENDING SO MUCH CRAP
  141. Look at supply and return figures
  142. Appropriate stock levels. Not cramming as much stock as possible on last day of month.
  143. Stop over-suppling
  144. Pay fair compensation.  Pay for the failure of a title.
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magazine distribution

Delayed billing does not play in newsagent magazine early return decisions

delaybill72.62% of newsagents participating in the early returns survey on the weekend have indicated that delayed billing does not impact early returns decisions.

This will shock some magazine publishers.

I know of publishers who have been encouraged to introduce delayed billing to reduce early returns.

Are you listening publishers? I sincerely hope so. I created this survey for you – to let you hear what newsagents think.

Delayed billing is administratively frustrating and while it’s nice to not have to worry about payment, it does not address the challenges of space and labour allocation to support a title.

The best way for a publisher to ensure a title remains on the shelf is for them to pay us a fair price for the use of our space.

48.81% of respondents say they early return a title because they do not have space to this play it.

The newsagency channel is the only channel selling magazines in Australia where product is sent without regard to the space available for displaying products. Our treatment in this regard disadvantages newsagents and provides our competitors with a competitive advantage.

Magazine publishers ought to study the survey results as should those working for magazine distributors. The results reflect a brokenness that must be fixed if newsagents are to stop retreating from engagement with magazines.

It is in the hands of magazine publishers and magazine distributors to fix this. I am worried that they will realise this too late to save magazines in the newsagency channel.

You can see the survey responses here.

Tomorrow, I will share newsagent responses to my last question:What can publishers and or distributors to do to stop you early returning?

9 likes
magazine distribution

Newsagency magazine early returns survey results

earlyreturns168 responses to my magazine rely returns survey provide a valuable  insight into newsagent thinking on early magazine returns.

167 of the 168 respondents undertake early returns. 100 say they return the day magazines come in and 67 say they early return before the end of the month but not the day they come in.

What is most telling is the reasons newsagents indicate for engaging in early returns. 91.67% of newsagents say they are sent too much stock. This is a damning stat. Every copy of every magazine oversupplied has a cost in space, labour and opportunity to newsagents.

48.81% of respondents say they early return a title because they do not have space to this play it.

The newsagency channel is the only channel selling magazines in Australia where product is sent without regard to the space available for displaying products. Our treatment in this regard disadvantages newsagents and provides our competitors with a competitive advantage.

Magazine publishers ought to study the survey results as should those working for magazine distributors. The results reflect a brokenness that must be fixed if newsagents are to stop retreating from engagement with magazines.

It is in the hands of magazine publishers and magazine distributors to fix this. I am worried that they will realise this too late to save magazines in the newsagency channel.

You can see the survey responses here.

Tomorrow, I’ll look in some detail at the issue of delayed billing covered in the survey and Wednesday I will share newsagent responses to my last question: What can publishers and or distributors to do to stop you early returning?

10 likes
Ethics

Memo to Your Brides Guide publisher from a newsagent

bridesWe received the Your Brides Guide yesterday for the first time and I’m ready to early return the lot. However, as it’s a full copy return and bulk, I am going to give it a couple of weeks before I freight it back to Network at my cost (which sucks!!).

While the title comes with three months delayed billing, that does not give it any rights.

The publisher says, in a note with the title, Your Brides Guide is a High value publication with low space requirement. No it’s  not. This title has a high space requirement. It does not fit in traditional magazine fixturing. Either I create something new or I place it with wedding gift lines off of which I make more than twice the gross profit.

The publisher says open up a copy in your newsagent and watch sales go through the roof. Really? First off, the business is a  newsagency not a newsagent. The owner of the business sis a newsagent.  You say sales will go through the roof yet offer no evidence to support your claim.

The publisher claims Almost $7 earned per copy sold.  Based on shopping centre rent and given the space requirements of the title – especially if I open a copy like they want – I would need to sell two copies a week just to pay for the space it would take. The earnings comment from the publisher shows little understanding of the operating costs of many newsagency businesses.

For this title to be of any real interest I need to be making at least $14.00 per issue and preferably more.

More newsagents will reduce their magazine focus if the numbers continue to fail like they do for Your Brides Guide.

9 likes
magazine distribution

Gotch magazine returns audit crackdown

Newsagents have told me about a crackdown by magazine distributor Gordon and Gotch on magazine returns claims. They are cross-checking supply and sales data against returns claims and going back to newsagents where the data does not add up.

While Gotch has spot checked returns for years, they now appear more attentive. Newsagents over claiming returns are more likely to be caught.

While there is plenty wrong with the magazine distribution model, consistent over-claiming of returns is not justified and could result in criminal proceedings if Gotch decided to take it that far.

My advice to newsagents is to have a structured transparent process for scanning returns as well as for arriving and selling stock. Fudging figures to get a bigger credit that is not justified in supply and sales data will result in you being caught.

12 likes
Ethics

Too many fitness magazines

gsfitnesstoomanyBoth magazine distributors have been sending us more fitness titles – too many for us to display how we would like. This is another example of us being abused and of the distributors increasing our financial obligation without giving us control over this. It is frustrating.

If Gotch and Bauer want us to be responsible for our indebtedness to then they need to give us control over this. Right now we don’t have control and this is why their pressure is unreasonable.

 

1 likes
Magazine oversupply

More on Zoo oversupply by Bauer Media

Check out the email from the allocations experts at Bauer. Having received 3 copies of Zoo this week and selling 1, the Bauer Sales Based Replenishment program (system / person) decided we needed more:

Thank you for sending your sales data.

Based on the information you have provided, we have raised an extra order on your behalf.

This order will be delivered to you on the next available delivery day.

Outlined below is a list of what the order will contain.

Your reference number for this transaction is XXXXXX.

Bipad Issue Code Title Quantity Ordered Quantity Supplied Status Notes
01021 1432 ZOO WEEKLY 2 2 Confirmed
01961 1431 NW 3 3 Confirmed

This is not justified sales based replenishment.

4 likes
Magazine oversupply

Sure it’s only by a couple of copies but here is evidence of Zoo being oversupplied

zoooversupplyClick on the image the see the screen shot showing the data Bauer has relied on to set our supply of Zoo Weekly. Look particularly at issues 28 through 33. Without justification our supply was increased.

While it’s only an extra copy, Bauer is hard on newsagents who are only a day late paying their bill.

Bauer is tough on newsagents yet it rejects complaints from newsagents when they are tough on the company. It needs to drop its double standards.

5 likes
magazine distribution

Newsagents need control over expensive AWW cookbooks

awwbestevercolWhile the publisher of Good Chef Bad Chef let newsagents control supply of the popular cookbook, Bauer send another expensive title this week without newsagent engagement. I’d have said no thanks to the $29.95 cookbook – The BEST-EVER Collection. Instead, it’s been sent out only to have us not put it on the shelves due to lack of space and a wrong price point for us in the cookbook segment. Bauer is big enough to offer newsagents an online portal through which we can control supply and therefore not burn energy with stock coming out and going back for no economic benefit for us or the publisher. Nuts.

6 likes
Magazine oversupply

APC magazine overloaded

magsapctoomanyAPC has a consistent sell through for us of under 50%. It’s now on my early return watch list given the failure of the allocation processes. Bauer has our accurate data yet they allocate ignoring this. Check your supply. Anything less than a 70% sell through and you’re probably losing money.

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Magazine oversupply

Too many copies of restored Cars

magsrestoredcarsOur supply of Retsored Cars Australia was increased without any justification in the sales data. While I like this Aussie magazine and want to support them, the publisher needs to ensure newsagents do not face an increase in supply without any justification in the sales data. Ugh!

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Magazine oversupply

Network overloads PlayStation Australia magazine

magsplatstWe can’t work out why Network Services would increase our supply of PlayStation Australia when we have not been selling out. There is nothing in this issue to justify the increase. All we can put it down to is that Network has spare stock they need to send out in order to charge the publisher distribution fees. Network wouldn’t do this to Coles.

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Magazine oversupply

Asiana wedding?

weddingasianI’m not sure what data Network Services has to justify sending us Asiana Wedding. It’s a new title for us and to fit in with wedding magazines we have to take a pocket away from another title. Landlords fine retailers who take more than their allocated space. Maybe we should fine magazine distributors who do this.

Any magazine publisher who feels their titles are unreasonably early-returned by newsagents should look at what Network has done here. They have supplied a new title based on evidence that Asian themed titles are strong for us and applied into an already full segment. Any newsagent with an eye to cash-flow will either early return this new title or early return another title to balance the account.

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magazine distribution

Bauer Media increases Yours supply without justification

magsyoursincreaseOur supply of Yours was increased by close to 20% by the Bauer Media allocations team without any justification in our sales data. With a consistent (except for one issue) sell-through of between 40% and 50% there is no reason for any increase in supply.

This is gross oversupply by Bauer.

I’d love to know if other newsagents have experienced a similar increase in supply of Yours without justification.

Yours is loss making for us on the current numbers. sales are not covering the retail real-estate and labour involved in carrying the title. the extent of the loss is extended by what to me looks like a broken supply model.

Bauer owned Network Services raves about its Sales Based Replenishment facilities. With Yours being a fortnightly title there are several options for top-up through the on-sale.

A fairer model would be skinnier supply and top up based on sales data. This makes the publisher and distributor more accountable rather than the apparent current model of using the small business newsagent as the warehouse and the back.

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magazine distribution

Aussie newsagents are not the only ones oversupplied with magazines

ukmagspocketguideA colleague newsagent from Ireland shared this story and photo, demonstrating that the magazine distribution challenges that frustrate us here in Australia frustrate newsagents on the other side of the world:

The World Cup is fast approaching and we are inundated with various World Cup titles trying to cash in.

When going through my magazine delivery this morning I came across a supply of “Pocket Guide World Cup” which is a “box out”, not ordered.

That in itself is bad enough but what really took the biscuit is that it was clearly on sale in another shop first, as their “Centra” price tag is still on the magazines.

Obviously this Centra store returned the magazine to EM News who then decided to pass them on to me, thanks very much!

Its the old chestnut of not being able to get the titles and supply you need whilst battling the box outs you don’t need and can’t sell, especially the ones that other stores couldn’t sell either.

Looks like it’s the same issues for Newsagents all over the World!

I share the frustration expressed.

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magazine distribution

Oversupply of Franchising magazine has to be a mistake Network Services

magsfranchisingI feel for the newsagent who had their supply of Franchising magazine bumped from one copy an issue to eleven copies of the latest issue – on the back of zero sales for each of the last eight issues. Click on the image to see for yourself.

I’m sure that this bump from one copy to eleven copies is a mistake by Network Services. The challenge is the cost to the newsagent. The time it will take to resolve, the frustration and, if it was a full copy return, the freight cost.  If it’s a topped return then pity the publisher having their product topped and trashed because of a supply mistake.

With Networking having all the data it needs mistakes like this should not happen. Indeed, this newssgent should not be down to get any stock of this title given its long-term zero sales in this business.

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Magazine oversupply

Early-returning AWW Low Fat Family Food title

magsawwlowfatWe early-returned AWW Low fat family food because we’re satisfied with our range of food magazines and are concerned at the $29.95 price point. We have plenty of low-cost cookbooks on which we make 45% and more. This title is a good example of a product for which our gross profit should be significantly more than 25%.

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Magazine oversupply
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