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magazine distribution

How newsagents can act on calendar supply by magazine distributors

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:

  1. Absolute control over what calendars they are sent.
  2. Trading terms that are competitive with other calendar suppliers.
  3. No cost of returning unsold stock.
  4. 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.

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Calendars

A single drop of long on-sale magazine titles not appreciated by newsagents

magspaceWith more and more newsagents reducing space allocated to magazines newsagencies are no longer geared to warehouse stock sent to last through a long on-sale. Whereas in the past holding bundles of stock for three months was acceptable, today it is not.

Technology should be used to apply product based on sales through the on-sale. Publishers will say this is not viable for them.

My message to publishers is that the model of supplying to us stock to hold for three months through an on-sale is not viable for us even if all supplied product will eventually sell. Today’s efficient newsagency does not have the luxury of the space required.

I am more likely to cut off long on-sale titles supplied in this way.

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magazine distribution

Woman’s Day wedding issue

Info just in from Network Servcies on a special edition for eastern seaboard states (excluding far north Queensland) of Woman’s Day out tomorrow:

There’s an additional Woman’s Day being delivered tomorrow to replace the stock that is currently on the shelf. It’s the same magazine, but with a 16 page cover wrap of George Clooney’s wedding.

It’s going out as a redistribution, so it will have the same bipad and issue code.

It was run after Monday’s XIT file release, so the files for this stock will be out in the late file batch this evening (after 6.30 PM).

Weddings are big sellers, so stores can expect almost a full supply of what they usually receive of Woman’s Day.

I can foresee complaints from customers who have already read or purchased Woman’s Day. A 16 page wraparound will not be worth a full cover price to some.

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magazine distribution

Expensive magazine partworks returns

Several newsagents have contacted me about the freight costs in sending boxed of unsold part 1 of new partworks back to the distributors. My experience is that distributors will cover this if you contact them and explain that the allocation of oversupply is their responsibility. If the supply model was more accurate such wastage could be avoided.

I was talking about this with a non circulation product supplier recently. They were shocked that newsagents had to pay to send back unsold stock, especially where newsagents had no say in the allocation of stock in the first case.

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magazine distribution

Overloaded with The Block magazine

blockoversupplyWe have been sent three times more copies of The Block magazine than we sold last year. That doesn’t make sense to me. This is a perfect title to be supplied using the Bauer Media Sales Based Replenishment program and not using newsagencies as warehouses.

I decided to early return stock at the weekend and reduce our exposure. Space is too tight.

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magazine distribution

Loom band title too late for newsagents

late-magazineAmazing Loom Bands is a title that has arrived in-store a few months too late as the latest incarnation of the Loom band craze has passed for now. Australia is ahead as Loom bands seem to be big in the UK right now. The other issue with this magazine is the price – $16.95 is too expensive for the Loom Bands fan.

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magazine distribution

Calendar terms illustrate the brokenness of the Australian magazine distribution model and how it hurts newsagents

The margin newsagents make on calendars from magazine distributors are a perfect example of the brokenness of the newsagency magazine distribution model.

Distributors and publishers think they are doing us a favour offering 40% gross profit can delayed billing to January. These terms are out of date, they are unacceptable.

I make 60% from calendars and I don’t pay for my stock until late in January.

What’s more – I choose exactly the calendars I want and I do this based on what I know about what will sell, data accessible through analysing magazine, card and gift sales.

Calendar publishers ought to not participate in a scaling out of calendar stock to newsagents who do not want this sub-standard margin product.

While I appreciate some newsagents will accept calendars through magazine distributors because they know no better, the current supply model is wrong and out of date.

Calendars are an excellent sales opportunity. In my experience, as a benchmark guide, you should be able to sell calendars worth between 50% and 100% of your monthly magazine sales.

To calendar publishers using magazine distributors I’d say – you need to offer terms that are commercially viable for newsagents. If your own model cannot then stop using our channel as there are other calendar publishers who do partner with us on terms that are mutually respectful and viable.

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Calendars

Terrific set your own supply initiative from Network Services

Kudos to Network Services and their publishing partner for giving newsagents the opportunity to set their own supply for the RSPCA trading cards. That Coles and Woolworths will not have this product and the free gift of a pack on Woman’s Day next week makes the opportunity compelling.

setyoursupply

The most important aspect of this is that newsagents set their supply – as long as Network adheres to that.

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magazine distribution

A good example of poor title allocations

changebasetelegWe often sold out of the 3 copies of the telegraph we received from network Services so they increased us to 7. I;d have thought 5 was okay but not 7. A review of our history shows volatility. It does not make sense for them to more than double supply. It makes me wonder if they are dumping excess stock they have to allocate. Better in our shop than their warehouse.

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magazine distribution

If you have an email from Network saying your returns failed

As I mentioned yesterday, some newsagents who lodged returns during Network Services Netonline planned system outage – from 1pm Friday to 6pm Saturday – are receiving emails from Network saying that their returns have failed. Some in Network and XchangeIT tell newsagents to call their software company. This is Network’s problem to resolve as the company has now confirmed.

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magazine distribution

Gotch emails helpful in tuning magazine range

gotchemailI like the fresh approach from magazine distributor Gordon & Gotch in their contact with newsagents. The emails are helpful, easy to read and opening opportunities to new titles we can use to expand our magazine range.

We ought to embrace the opportunity of new titles, not all but some. The information accessible through the Gotch emails helps us make that decision. It helps us be newsagents – the only real magazine specialists in Australia.

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magazine distribution

Network Services system upgrade causes problems for newsagents

Newsagents who lodged returns during Network Services Netonline planned system outage – from 1pm Friday to 6pm Saturday – are receiving emails from Network saying that their returns have failed. Some in Network are blaming their newsagency software supplier. Others in Network are acknowledging the problem is Network’s to resolve.

If only the left hand in Network Service knew what the right hand was doing.

This problem is 100% Network’s to resolve.

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magazine distribution

Newsagents respond to survey on magazine oversupply

I recently asked newsagents to provide specific examples of what they consider to be magazine oversupply.  Here’s what I asked for: Please list details of what you consider to be magazine oversupply: Title name, most recent supply, average net sales. Please use a separate line of text for each title. This data will be published on the newsagency blog as part of a series about the broken magazine distribution model that disadvantages Australian newsagents.

  1. Your Stars Magazine Supply since Autumn 2013 2 (jumped to 3 for Winter) TOTAL Sales since April 2013 Autumn 14 increased to 5
  2. British Football Weekly Supply 21/8 = 2 Never sold a copy in 5 years Have cancelled supply but it keeps re-appearing….
  3. Mustang Monthly Supply 21/8 = 3 Normal supply = 2 No sales in last 12 mths
  4. Tamiya Model Magazine Int. Supply 21/8 = 3 Normal supply = 2 No sales in last 12 mths
  5. Just to balance the ledger here’s G & G titles EWW 4 2 INSIDE OUT 5 3 DELICIOUS 6 3 MR WISDOMS SUDOKU 6 3 TATTOOS DOWNUNDER REISSUE 5 0 TRAIL ZONE 2 0 TATTOO CANDY REISSUE 15 0 SATAC UNIVERSITY GUIDE 3 0 FEAST (N/A) 7 3 JUST BIKES 21 11 MARIE CLAIRE (N/A) 8 4 IT GIRL 14 6 ANH PRES DETOX 6 0 CLASSIC ROCK 6 3 FUN TO LEARN BAG O FUN 12 6 VIC FISHING MONTHLY 4 0 BETTER HOMES & GARDENS (N/A) 34 25
  6. BetterGolferRedist 13 0 Dolly 20 5 Extreme Action 6 0 FourFour2 4 1 INKED GIRLS REDIST 3 0 INSIDE SPORT 3 1 SCOOBY DOO MYSTERY MAYHEM 3 0 SCOOBY HIGH SCHOOL 4 0 SIMPSONS WINTER WINGDING 6 0 TMNT-TURTLES MUTANT MISSIONS 4 0 INKED GIRLS 7 2 CLEO MINI 6 0
  7. Oversupply is more than I request. Womans Weekly 46, average 8 per week Thats Life 32, average sales 13 per week The issue we have is that we have to pay freight costs for any over-supply without any chance of recovering this cost on any unsold magazines
  8. weekly telegraph 17 and our average is 5 sales and it has been going on like this for 5 years
  9. Power Torque, 7, 0 Delivery Magazine 5, 0
  10. LIMELIGHT 14 COPIES AV SALE 7 COPIES BELLE 38 COPIES AV SALE 20 COPIES FRANKIE 44 COPIES AV SQLE 25 COPIES
  11. Symply Too Good No 1 – 9, sold 4 in last year Symply Too Good No 2 – 9, sold 3 in last year Symply Too Good No 3 – 9, sold 3 in last year Symply Too Good No 4 9, sold 2 in last year Cosmo Brides – 12, sell av. of 4
  12. GOT 12 NW magazines last week and selling 5-7 last 10 weeks, this week we get 21
  13. GOT 12 NW magazines last week and selling 5-7 last 10 weeks, this week we get 21
  14. Monocle, 5, 0.6 Aust Ironman, 5, 0 Aust Horse Performance, 15, 0.4
  15. lol
  16. GO CAMPING
  17. Reader’s Digest Last Issue received 12 Sell 1 every 3 months
  18. Catalogue, rec’d 6, av 1, usually receive 3 Select AFLK Albums, usually rec 2 or 3 at a time, just received 6 when we have 7 on hand, assume end of season trying to clear warehouse. Very angry as I have to pay to post back from remote area, costs a fortune, wipes a good part of profit on any sales, grrrrrrrrr
  19. mens health magazine, the last three issues getting 8-9, selling 3 max. latest issue we get 21
  20. Cleveland western, 60, 0 Commando Library, 2 every week, 0 lovatts Mega, 6, 1.4 bristle busters, 8, 2.3 mens fitness, 6, 1.4 Just Cars, 16, 4.6 AWW, 40, 17.6 Country Homes, 7,3.6 Grass Roots, 13. 5.6 Kit Homes, 6, 2.2 Watch, 8,2 New Internationalist, 10,0 Performance Horse, 9,1 Family Tree, 12,2 Rhythms, 8, 0.6 Delivery, 11, 0.6 Power Torque, 11, 0.2 4wd Touring, 18, 0.4
  21. AUST FLYING SUPPLY 4 SALES 0 FLIGHTPATH SUPPLY 6 SALES 2
  22. GETTER GOLFER SUPPLY 2 RETURN 2 SUPPLY 2 RETURN 2 SUPPLY 3 RETURN 3 THIS TIME ROUND SUPPLY 9 AND NO SALES YET ……

This is all the responses received without any editing by me.

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magazine distribution

Newsagent magazine supply standards

In February 2005 I spoke at a breakfast meeting of magazine publishers in Sydney and presented a suggested list of magazine key performance indicators. In cleaning up yesterday I found the list and thought I’d publish it here for comment.

  1. Scale out to reflect title performance in that outlet with proposed supply to be no more than 25% above recent sell through rates except in exceptional circumstances where the additional product is expected to sell due to cover feature or special promotion. With higher scale out to be accepted for an additional fee paid to the newsagent.
  2. Offering of a carrying fee for titles which do not meet minimum performance criteria so that the newsagent is paid to carry the title. The carrying fee to cover labour, real-estate and any other fixed costs.
  3. Introduction of a penalty payment to newsagents for any issue with a sell through of less than 50% on an escalating scale based on a falling sell through.
  4. Newsagents to be able to easily and electronically alter order quantities (i.e. without having to call a call centre and wait on line for too long) and with no maximum number of titles to be adjusted each week or month.
  5. Newsagent changed supply figures not to be altered without reference to newsagent unless such change absolutely supported by sales data.
  6. No cut of supply below current recorded net sales.
  7. No reissue within six months of last issue of a title.
  8. Delayed billing of at least 30 days for any new title.
  9. Returns to be credited within 48 hours of provision of electronic returns data or 7 days of provision of physical returns form.
  10. Returns to be called no later than the date of the next issue of the same title going on sale.

Magazine KPIs are needed for titles outside the top 200. Inside the top 200 the supply model is, overall, good – although somtimes I would like to be able to get extra stock more easily. Th real problem is the titles which generate around 20% of our revenue. These titles are cash flow negative. The KPIs I suggest above, if adopted, would make them at least cashflow neutral. The cash saved would help us have more resources to reinvest in our businesses.

I’d update my delayed billing point (8) to say that delayed billing titles are to be be supplied with an additional fee to cover labour and the space if they do not meet minimum sales performance.

In a shopping centre, a magazine pocket $2.00 and more a week. Add to this the labour cost of magazines in that pocket and you could argue that such a newsagent needs to be paid $2.50 to $3.00 a week just for the space and time.

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magazine distribution

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…

12 likes
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

Inside Out magazine still cheap at Coles

cheapinsideoutIf every newsagents needed a reason to quit Inside Out magazine it is the continued discounting being run for the title at Coles. Given how Coles operates this has to be a publisher initiative. The Exclusive to Coles bookmark in each copy tells shoppers to not purchase the title elsewhere so why should we stock it?

I don’t understand the ethics nor the social responsibility of this move. It seems dumb to me that a publisher deliberately and for the long term prices a magazine in Coles at 26% less that the price of the title elsewhere and less that we are charged for the title.

There is no sense in stocking a title that is priced in such a way as to make my business look expensive.

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Ethics

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.

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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
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