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magazine distribution

Ovato publicly announces no physical magazine returns for strongnewsagents

Ovato hit Twitter yesterday with an announcement re no physical returns. This is great news as there is no better incentive to reduce waste in magazine printing than eliminating physical returns.

UPDATE @ 10:00am: I have been contacted by Ovato,. Apparently the Tweet announcement was inaccurate. Here is what I received:

I have been alerted that our marketing team has posted on twitter that we have stopped all physical returns. You have picked up on this on your blog today.

This was actually the EDM Mailchimp notification sent out to newsagents on our NPR (No Physical Returns) program that has been running for over 3 years that was linked to twitter in error. We do a quarterly review of all EDI sales data from XchangeIT and then confirm to agents who are on if they continue to pass the criteria and confirm to agents who have just passed they are now on the program. From the latest review with now have 1,129 newsagents on the NPR program with 25 joining from August. We know this is an extremely beneficial program to newsagents saving time and real cost and is a key focus for XchangeIT and ourselves to work with agents to improve their data and get more newsagents on the program.

In regards to continuing to simplying the magazine category for returns to save time and money we confirmed in June to all newsagents not on the NPR program that we had permanently stopped full copy returns except for partworks and selective trading cards from July. We confirmed this after doing a 3 month trial from the start of COVID in April which we received very positive feedback. The newsagents on this program still have to send back tops so we can perform audits.

I would be grateful if you could update your blog post on this do avoid and further confusion and we will send an update and apologise on twitter to clarify the mistake.

Okay, so returns of unsold magazines is still a thing, which is disappointing since newsagents can’t control wheat they get yet they have to spend money returning what does not sell.

Here is a new tweet from this morning:

Here is the original detail Ovato shared on Twitter:

To ensure continuation of this process, the following terms and conditions apply:

You will:

  • Continue to send regular Sales Inventory Data (SL2 files)
  • Submit returns files via XchangeIT not via web and Ovato Connect
  • Maintain minimum Gold Status through XchangeIT
  • Pass Ovato Retail Distribution’s data review process where variances in your EDI scan data and returns claims are evaluated across the entire Ovato Retail portfolio.
  • Continue to return full copies of Partworks and some trading cards as these are excluded from the program. We will communicate to you in advance of recall which trading cards need to be returned.  All returns boxes containing Partworks and trading cards must have the fluro “Partwork” label supplied by Ovato next week in a prominent position.
  • Hold physical returns for 2 business days commencing the day after submitting your returns through XchangeIT; this includes supplementary returns
  • Remove all returns claimed from sale and destroy all unsold product to ensure it is unsaleable

Ovato Retail Distribution will:

  • Generate random audit requests whereby you will be required to submit physical proof of claims. These audits will be advised through XchangeIT or ORD and compliance is compulsory. This is a key requirement of the program.  If you are unable to provide proof of claims to support your returns submission, we may consider your returns submission void and reverse the claims raised.
  • To meet the requirements of the audit, physical returns must be held as specified above.
  • Continue to review the performance of newsagents across all measures to ensure full compliance.
  • Require resumption of our normal physical return policy if at any time you do not meet the above criteria.
  • Provide you with “Partwork” fluro stickers to be placed prominently on all return boxes for partworks/nominated trading cards. To order additional stickers contact us on 1300 650 666 or via email contactus.retaildistribution@ovato.com.au

We hope these revised trading conditions deliver efficiencies related to the management of the magazine category in your business.

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magazine distribution

Ovato yet to advise NSW/ACT newsagents about new magazine delivery arrangements

News Corp. is taking over delivery of newspapers for Ovato, starting from tomorrow. As of right now arrangements have not been put in place by Ovato, leaving newsagents up in the air as to arrangements.

One newsagent I have spoken with has staffing arrangements to organise. Another I spoke with has keys to hand over for secure delivery of magazines.

Here we are, hours away from the change and nothing is organised. Someone is responsible for this, responsible for the stress being felt by newsagents, responsible for what tomorrow might look like if the current lack of arrangements plays out.

The decision by Ovato was announced weeks ago. The have had time to get this done right. Even if they call newsagents this afternoon, it is too late, rosters were set last week.

What a mess.

Footnote: as I noted a while back, I think there will be consequences for newsagents from the decision by Ovato to use News Corp.

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magazine distribution

Ovato offers little help to small business newsagents in dealing with the AFL trading card problem

Ovato is being inflexible in helping newsagents deal with the supply of AFL trading cards. here is the company’s position:

Team Zone AFL Cards – 85864/210

O/S March 14th

Initial allocation based on 80% of 2019 sale & small agents full carton or below got full supply larger agents received on average just 35% of total supply

Current sales in newsagents are 15% of initial supply after 10 days on-sale and sales are tracking -10% YoY

Returns policy as previous years. Agents need to phone / e-mail the contact centre to confirm how much stock is wanted to be returned. Publisher will send Aus Post return label to agent. Once agent confirms returns have been sent credit is given.

 

Select AFL Cards – 15035/70

O/S March 2nd

Initial distribution was 60% of final sales in 2019.

Current sales in newsagents are 30% of initial supply after 3 weeks on-sale and sales are tracking -10% YoY

Returns policy: Stock can be returned for credit but is full copy return.

For those outside of newsagency businesses – this is stock newsagents did not order. They are forced to carry the financial burden off dealing with this. This is unfair given that there is no reasonable process in place for newsagents to mitigate their financial costs for this product.

The Ovato approach places an unfair burden on small business newsagents.

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Ethics

Is Ovato imposing an unfair financial burden on small business newsagents because of COVID-19 impact on magazine distribution?

This is a serious question: Is magazine distributor Ovato hitting small business newsagents with an unexpected cost as a result of an impact on its operations due to COOVID-19?

Many newsagents have reported an unexpectedly high magazine charge. For some, the charge is higher than their cashflow supports, they will be unable to pay the bill.

So, I dug deeper. I have found examples of Ovato increasing supply of titles beyond what is reasonable over the last two months, even longer this year. In one instance, for Reader’s Digest, based on a 25% return rate, Ovato increased supply 37.5%. Then, another 10% and a month later another 16.5%. There is no justification whatsoever in the sales data from the store for any increase.

It’s not just Reader’s Digest. There are other titles too.

Ovato has, as I understand it, a requirement in some magazine publisher contracts that they distribute all of what they receive. If my understanding is right and this clause has not been set aside in the current situation, the closure of most transit location retailers will have increased the volume of inventory that Ovato must place elsewhere, thereby increasing the cashflow obligation on newsagents.

Ovato management need to explain how they are dealing with the shutdown of around 25% of their usual mix of retail outlets. They need to ensure that their allocation systems do not unreasonably increasing supply to newsagents. The evidence suggests otherwise though. If this has been the case, they need to fix it right away. If I am wrong, they need to explain why supply increases where the return rate is 25% or more.

I really thought we were behind the problems of serious magazine oversupply. Research over the last week indicates otherwise. I’d be glad to be proven wrong.

If you are a magazine publisher, look at your contract with Ovato, see whether you require them to distribute everything. If it does, propose that this requirement is set aside for the next six months.

Given the data flow from newsagents, there is no need for oversupply. Indeed, any oversupply ought be considered neglect, a cash grab,. And given the parlous state of Ovato, that is the last thing newsagents need to be exposed to right now.

Here is how we are responding to oversupply to my own newsagencies: we have reverted to weekly tight culls of magazine supply, cutting back to what we know we will sell plus a small buffer to allow of the current unique situation where some magazine categories are in growth.

The oversupply has caused us to invest more time on magazine supply and to be ruthless to protect our business.

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magazine distribution

Ovato shares down 39.66% yesterday

The share price of magazine distributor Ovato took a significant hit yesterday, falling 39.66% during the trading day.

This was on the back of the company releasing its half year results. In the accompanying investor presentation, the company notes, regarding the latest results, that sales reflect Lower than expected newspaper & magazine volumes. I was shocked reading that. The lower volumes are in line with trend. Who made this projection and on what basis?

Simply Wall Street published some interesting commentary regarding Ovato a few days ago. That commentary includes this:

Ovato is more than a magazine distributor. From where I sit, each division of their business faces significant challenges of disruption and considerable margin pressure.

While I have no crystal ball and seek no ill for the Ovato business and those who work in it, newsagents need to contemplate what their own businesses might look like of Ovato ceased to exist or significantly scaled back its operation.

Yesterday’s share price drop is significant and will play into confidence abut the Ovato business. Urgent and more significant change must be anticipated.

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magazine distribution

What if magazines drop from 2 days a week to 1 day a week

I would not be surprised if magazine deliveries do drop to one day a week. With the number of publishers and retail outlets contracting, it is challenging to make efficient use of the logistics necessary to land magazine at retail outlets.

Dropping to one delivery a week could be economically essential for the current magazine specific delivery situation.

If magazines could be cost-effectively delivered outside this single purpose and single supplier controlled process the days of delivery could be different, more flexible.

At the Bauer Media Connections conference on the Gold Coast in September the General Manager of Ovato posed the question of dropping to one day a week delivery.

So, that’s what I am interested in today. If magazine deliveries were to drop to one day a week, which day would you prefer?

Delivery one day a week would impact local newsagency foot traffic. If such a change was contemplated, maybe a Wednesday works better for labour management, shop floor workflow and shopper traffic attraction. What do you think?

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magazine distribution

Drop in magazine titles helps retailers better focus

At the Bauer Media Connections conference on the Gold Coast yesterday I was interested to see data shared by Ovato about the reduction in magazine titles being circulated over the last 3 years. I appreciated seeing the drop broken down by local / UK / US.

While there have been some magazine launches over the 3 years, the reality is we have less titles in circulation today compared to 3 years ago. This is a good thing in my view.

Shopper interest in special interest and more m mainstream titles is easily satisfied by the reduced range on offer today. Indeed, we could see a cut of, say, 25% in some segments without a negative impact on sales.

What often happens in a business with more titles in the same segment is a more diverse mix of titles sold rather than a desired increase in total revenue for the segment. Competing titles can cannibalise each other. Retailers do not benefit from this.

So, I am pleased to see this data from Ovato showing a net reduction in the range of titles available.

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magazine distribution

Do you still use IPS?

Several newsagents contacted me to share frustration with IPS and their handling of the Bathurst program for this year’s event.  One suggested I post here to ask how many people use them. Click here or scroll through – it’s one question. I’ll leave it open until Friday afternoon.

Create your own user feedback survey

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magazine distribution

Bauer looking at Pacific Magazines?

Rumour that Bauer could consider acquiring Pacific Magazines has been circulating for some time inside publishing and connected circles has been given oxygen today This from B&T:

According to reports in today’s The Australian, Seven is negotiating with rival Bauer Magazines to offload its Pac Mag business.

Pacific Magazines currently publish titles such as Better Home And Gardens, marie claire, Who, New Idea and Men’s and Women’s Health.

According to Seven’s annual report, Pac Magazines generated revenue of just shy of $130 million for the financial year, down 7.2 per cent from $139.5 million the previous year.

The reverse had been a rumour through late 2017 / early 2018. However, with the latest results from Seven, and a new CEO working on the business, being a seller makes more sense.

If such an acquisition did proceed, there would be implications for all businesses in the magazine supply chain.

For several years, when asked at conferences and when participating in industry panels, if I have been asked I have said that Australia is too small for both Bauer and Pacific, especially with the weekly titles.

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magazine distribution

Ovato needs to let newsagents cancel a magazine title, forever

Newsagents have never had the ability to permanently cancel a magazine title.

Sure, you can cancel a title. However, three months later, it could appear again, thanks to the Ovato processes. Indeed, if often does appear again at some point.

While it does not happen as much today as it used to happen, it does happen, and it should not happen.

If newsagents are to be responsible for their magazine bills, they should have control over what is supplied.

This is not a difficult question – that we have the opportunity to manage our level of indebtedness, the cost of theft, the cost of labour … indeed, all costs associated with magazines.

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magazine distribution

Business outlook for Ovato (Gotch)

Click here to access an investor presentation fro Ovato, released yesterday. Ovato shares were halted from trading pending the announcement of a share entitlement offer.

As you can see from the half year report and their share price over the last year, it has been a tough time:

Here is a page from the investor presentation that may interest newsagents – not the magazine forecast:

With magazine sales declining, cover prices at five (and more) year ago prices and with GP fixed at 25%, this category is problematic for newsagents.

No wonder….

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magazine distribution

Did you miss magazine deliveries today?

I have heard from some newsagents of magazine deliveries set for today from Ovato not being delivered. As things go with Ovato, newsagents are left without stock and the likelihood of lost stock not being replaced.

While not getting the stock is frustrating in itself, there is a cost to newsagents who rostered additional staff to handle magazines when on a Wednesday they would not usually have them rostered on. So, lost revenue and additional labour costs.

Ovato is having a bad April.

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magazine distribution

Ovato magazine returns file corruption returns challenge

Ovato (Gotch) has sent this email to some newsagents today:

Dear Retailer,

Due to a corrupted file a number of EDI returns were unable to be processed by us. We have identified the agents with missing returns and we are emailing you as we need you to re-send your EDI returns from 4th or 5th April through xchangeit as soon as possible so we can process your returns.

You can resend your returns from your POS or by choosing to resend the file through the Xchangeit website.

https://xchangeit.lpages.co/xit-main/#info-for-newsagents/
Log on using your account number and password
Choose the file and click on resend.

Regards
National Contact Centre
Retail Distribution

I’m told 400 newsagents have been affected. Ovato sent the email without advising software companies. Why does this matter? The software companies are the first line of contact. had they been forewarned they could have been proactive with advice rather than taking calls and scrambling to understand what has actually happened.

This is an own goal by Ovato, with companies like my own Tower Systems left to fund the cost of helping newsagents.

If Ovato did not inform XchangeIT then the failure is even greater.

Asking the files to be resent is problematic operationally. It can be done. However, getting 400 newsagents to do this is the issue, especially this week before Easter.

Given how Ovato handles returns claims disputes this could cause a significant waste of time and money for newsagents.

UPDATE 18/4/19 5:59AM:

The help desk traffic from this is immense already. While it is easy to resend the file, many have never done it and, naturally, they call for support to make sure they are not making a mistake.

What a failure by Ovato. Not the original problem and that can happen. No, the issue here is the poor communication by people at Ovato. They decided to not advise the software companies or XchangeIT before advising newsagents. That decision added workload to everyone and added unnecessary stress for newsagents.

UPDATE: 18/4/19 8:41am. Tower Systems now has the list of affected newsagents and is therefore better equipped to provide advice. That we had to chase this and did not get it until now is appalling.

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magazine distribution

Gotch disrespects newsagents, again

Newsagents today received a magazine from Gordon and Gotch with this sticker on the cover promoting direct subscription. I doubt any newsagent seeing the sticker would put the title on display for it seeks to drive revenue from the channel, to the publisher. What are the people at Gotch thinking letting this through? Clearly, not thinking.

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magazine distribution

Worst newsagency supplier of 2018: Gordon and Gotch

I nominate magazine distributor Gordon and Gotch as the worst newsagent supplier of 2018. I do this on the basis of:

  1. A broken magazine supply model that results in failure every month with between 30% and 50% of what is sent as not selling. This wastes newsagent capital, time and space. Gotch people will say this is the fault of the publishers who control print runs. I don’t care. Gotch is the supplier to newsagents.
  2. Poor communication.
  3. Poor customer service. Often non existent. Newsagents have to spend too much time using inefficient systems at Gotch – phone and email – to get simple queries answered.
  4. Poor tech infrastructure that makes it hard for newsagents to proactively trade on new titles. I am tired of excuses by Gotch representatives on this.
  5. Disinterest. The impression newsagents tell me have is that when it comes to Gotch, newsagents feel they don’t care.
  6. Poor commercial value to a newsagency business. The poor margin, couples with a broken supply model and a high labour cost for newsagents on dealing with queries drives this poor value.

Feel free to nominate any other company or agree or disagree with my post.

FOOTNOTE: A Jan 1, 2019 reflection: Why am I so hard on Gotch? Because they have had decades to get this right. They are a cornerstone supplier in a cornerstone category. Newsagents used to be their exclusive customers for print media products. Now, ur channel is one of several. While we have more competition, Gotch has less, and we are the worst off for it.

The position of Gotch in the channel, their size, their market dominance mean we ought expect more from them. In 2018, we got less. This is leading newsagents to exit magazines.

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magazine distribution

What’s in a name, PMP (Gotch) to become Ovato

Gordon and Gotch announced to newsagents Friday that they plan to change their name to Ovato. While the announcement seems innocuous enough, the final statement in the letter has caused several retailers to express concerns.

During 2019 the Gordon and Gotch name will be transitioned to a division name of Ovato and we will be sending out further communication in due course as well as any resulting changes to our trading relationship.

My take is that PMP plans further, and most likely considerable, evolution of their business and that the name change is a public facing representation of that change.

The company’s share price, sitting at less than half it was a year ago, is the driver for change, as you would expect. This level of drop in market value is serious for investors and serious for the board that sets the direction of the business.

Check out this graph of the PMP share price from the ASX website:

Do I think what we know as the Gotch business is set for change? Yes, I think it is set for change. It’s margins are low and it is dealing in a product category that remains stuck in deep decline. Change is necessary and by change, I am talking about 90 or 180 degrees. Like the change we need too drive in our businesses.

At Australian Printer, there is a useful report on the name change:

PMP will soon be rebranded as Ovato, as part of a shake up that will see it also install an 80pp manroland Lithoman press in the new year.

The company had taken heavy hits to its share price when its expected EBITDA was revised twice throughout the financial year, coinciding with the early exit of long-time CEO Peter George.

During the company’s AGM, its chairman pointed to the three-month delayed ACCC approval leading to a shorter time-frame to integrate with IPMG, meaning planned efficiencies were not achieved.

Kevin Slaven, CEO, PMP, says, “As a business we have drawn a line in the sand.

“Our rebranding [to Ovato] is not a simple change of name for the sake of changing a name. It is based on the rationale that the value of bringing our businesses together is significant, that we need to signal a significant evolution of the business, and to better present the impact we already have, and are building, in data and technology.

“We have had some significant customer wins during the year and the renewal of many existing major customer contracts. We have won or re-signed some large customers with a bundled offering of print and distribution. We have a unique selling proposition as the only company in Australia and New Zealand with a national footprint providing co-located print and distribution delivering freight efficiencies, and speed to market for customers.”

Significant evolution. Gotch has changed since taking over the Network Services distribution business. However, I suspect the financial benefits have not hit what the board expected. If I am right. what we know at the Gotch business will need further change.

The assessments they will be doing, on the numbers, are what we should be doing. Products we sell have to pay their way. This is why I say to every magazine publisher with whom I speak, the 25% gross profit on magazines is unacceptable. maintain this and you will see fewer newsagents stocking magazines. We are no longer agents.

FYI here is the full Gotch announcement:

Dear Newsagent,

As you know Gordon and Gotch is a subsidiary company of PMP Limited. At the recent AGM it was voted positively by shareholders that PMP and all of its subsidiary companies would be rebranding as Ovato from February 7th 2019.

In terms of the work we already do for you, very little will be different from February. There will be a new brand name and logo on your invoices and our communications, access to websites will not change.

The company name, business number (ABN/ACN) and bank accounts will also remain the same as current.

During 2019 the Gordon and Gotch name will be transitioned to a division name of Ovato and we will be sending out further communication in due course as well as any resulting changes to our trading relationship.

Many thanks

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magazine distribution

Are partworks set to be a thing of the past in Australia?

With the unexpected liquidation of partworks importer and distributor Bissett Magazines, the question is: do partworks have a future in Australia?

The closure of Bissett came as a shock to magazine professionals. Bissett had what was effectively a monopoly on partworks in Australia. They had been in this position for many years, supplying newsagents through distributors as well as fulfilling subscriptions to the public directly.

I and others I have spoken with in our channel were shocked by news of the closure and still can’t understand how or why it happened. One guess is that they wanted out and could not sell the business. Who knows!

How Bissett operated with partworks regularly frustrated newsagents as they provided their direct customers what looked like better service and greater benefits than were available to customers who purchased partworks through newsagencies.

Subscribers usually got bonus gifts or items we could not access.

There were stories of newsagency customers calling Bissett’s offices with a query and being told to switch to a subscription from them rather than buying through a newsagency.

Then, there was the problem of not being able to get sufficient stock to satisfy cutaway requests. While newsagents often blamed the distributor for supply issues, it was the supply to the distributor that setup supply challenges from the outset. It became unclear if the supply issue to distributors was an Australian issue or a UK publisher issue.

I appreciate there are plenty in the channel who would be happy for partworks to disappear. My view is not as straightforward. A good partworks title launched with a solid TV campaign is good for our channel. It generates traffic and can set people on a path of return business, more deeply connecting them with our businesses.

On top of the closure of the Bissett business in Australia is news of challenges in some partworks businesses overseas. I hope those issues settle and a new model is determined to make partworks successful in Australia.

Financially, the opportunity is considerable. However, for it to work requires a reset around the processes, more certainty for newsagents to encourage their engagement, greater efficiency in the supply model and a tech-backed solution to better connect retailers and customers to retain more in the pool supporting a partworks title.

Unless partworks publishers work with people here in Australia to provide a more relevant to today route to market I do fear partworks will fade and eventually disappear from Australia. I’d prefer the challenges to be confronted and addressed.

What happens over the next few months depends on what the UK publishers want to do in our small market. We are a small market and that is part of the challenge. However, we have been viable for the UK publishers for many years. That can continue. The ball is in their court.

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magazine distribution

The Kylie Jenner Vogue is still available

At Melbourne airport yesterday I saw 4 copies of the Kylie Jenner Vogue Australia issue available in one shop.

Tech savvy magazine publishers and distributors would know exactly which shops have stock and would leverage this information to drive in-store traffic.

Instead, we have a low-tech approach to magazine distribution that serves only the publishers and to the retailers and consumers.

While it is not often we see magazines like this one that ‘sell out’ within 24 hours. there is benefit in a smart tech solution to help retailers and consumers find titles. This approach would ens=courage newsagents as to the value of the category.

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Leadership

Do you still do magazine putaways in your newsagency?

A couple of newsagents told me this last week that they are quitting magazine putaways out of frustration with the supply model. In one case, their frustration is to do with partworks and the inability of Gotch to supply to satisfy even only cutaway customer orders. In the other case it is to do with inconsistent supply of a couple of special interest titles and the lack of information from Gotch about this.

Told them I would put the topic up here for comment.

For what it is worth, I think the core problem here is the inadequate use of technology by Gotch. Their newsagent-facing systems are poor and always have been. A modest investment could help newsagents be the magazine experts most would like to be in their local communities.

Repeated requests and submissions to Gotch achieve nothing. Newsagents lose. Newsagency  business customers lose. Publishers lose.

11 likes
magazine distribution

Newsagents in tourist areas continue to struggle to get the magazines they could sell

A newsagent contacted me recently for help getting minors magazines for their tourism destination area. Their pleas to Gotch had gone unanswered.

Similar please from me on behalf of other newsagents over man y years have elicited words but little action from Gotch. The company appears incapable of getting magazines to some places where they would certainly sell.

I hope magazine publishers who want to sell more magazines are reading this.

Here is what the latest newsagent who contacted me wrote about the issue. here is their initial contact with me:

Hi Mark,

I just wanted to comment on the magazines an area that goes through the roof for us, is impossible to get Gordon and Gotch to send more mags. Both Exmouth and myself are struggling to get them to send more like a several years ago.

People on holiday read magazines at the beach, resort or caravan park….
Its frustrating because they are not listening.

I went back to them and offered to reach ut to Gotch myself for them. Here is their response, which was forwarded to Gotch:

Hi Mark,

It would be great to have another voice that could help them change there opinion of mags in holiday destinations

The issues:-

1) It takes 2 weeks to up any magazine – eg Womens Weekly and New Idea which are a weekly magazine.
2) They have reduced my selection of mags so that the variety is not there on the shelf – when people are on holidays they will buy 2-4 magazines at one purchase
3) The grey haired nomads are here and want there “That’s Life”, “Take 5”, which constantly run out because they only send 5
4) The grey haired nomads also want knitting and arts/craft books and we no longer get the variety they want.
5) After taking over from Network Services my mags were halved and I’ve been trying ever since to replenish the new stands I purchased to hold all the mags. Its terrible to see those same shelves half empty.

I asked them to continue with the same order from Network Services and told me I needed to go onto the website and order them, which was nearly impossible because they were not coming up on the website to start with. This was so much work for me to just get a few mags back and felt it was not my responsibility because they took over the business and I don’t get paid a lot for the mags anyway.

I did consider at one point cancelling everything but I am the only person in Coral Bay that sells mags….

I’ve had a look and my downturn in revenue has dropped 50-60%

Mainly I am frustrated and have given up because I am in the busy season now with 200+ customers coming through my doors every day.

Thanks for listening if nothing else happens.

So far, no word from Gotch.

I hope magazine publishers who want to sell more magazines are reading this.

18 likes
magazine distribution

Magazine distributor Gordon and Gotch blocks small business newsagent return of AFL Team Coach product

This communication from Gotch to a newsagent yesterday demonstrates the lack of control newsagents have over magazine supply inn their businesses. This drives lack of reasonable control over labour cost, space cost, shrinkage cost and cashflow cost.

The newsagent, for reasonable commercial reasons, decided to return the title. Here is the Gotch response:

Subject: AFL Team Coach Product 7231831

We have received your request for a return on AFL Team Coach Product (either Cards or Albums or both). At this stage, your return has not been processed. As you are probably aware, Team Coach product is extremely sort after and you should be able to sell all stock received to date. On this basis we would like you to reconsider this request and hold on to the product. Also, you will not receive any further stock from us so you will only need to sell what you have received to date.

However if you still would like to return the product, please email our National Contact Centre with the following info at contactus@gordongotch.com.au. However please DO NOT send back any stock with your regular Gotch returns until we respond to your request.

1. Product type (Cards or Albums)
2. Account number
3. Qty being Returned

Regards,
Gordon and Gotch

What a poor response and a waste of time for the newsagent on tiny margin product.

There should be no approval needed. This product is sale or return. The newsagent has no control over supply. Gotch needs to be responsible.

No wonder newsagents are reducing their space commitment to circulation product.

Until newsagents are treated with fairness and respect, like business partners, magazines will continue to fade in relevance. This can be reversed. It would take publishers pressuring Gotch to fix their systems, once and for all.

16 likes
Ethics
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