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Ugh!

The failure of Are Direct to get magazines to retail newsagents on time costs newsagents money

It’s Thursday morning. We have had our two magazine arrival staff members at the shop since 6am, waiting. Then, an hour and a half later, we get notified.

For years, Gotch managed pitched excuses, reasons why magazine distribution was challenges. Then, it was Ovato making similar pitches – the name change achieved nothing. Now, under new owners, well, here we are … waiting for magazines.

It’s a one-way relationship, and here’s why I say that. Their starting position when a newsagent reports short supply is that they do not believe you. It can take 3 ro 4 contacts to progress a claim. But, sometimes, you’re not successful,. even though know the magazines were not delivered.

One of my shops, one I bought just before Christmas 2021, does $380,000 a year in magazine sales. The distribution mess in Melbourne overseen by Are Direct is commercially harmful. Publishers should be screaming at them.

Footnote: I appreciate not everyone is impacted by this. Right now, it appears to be Melbourne focussed.

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magazine distribution

Newsagents frustrated at delay to Suncorp EFTPOS funds settlement

Suncorp missed its daily EFTPOS funds settlement, causing challenges for plenty of retailers from what I am hearing.

The company issued a statement:

Overnight processing of Suncorp merchant settlement files from Wednesday, 2 February 2022 has not occurred and resulted in these being delayed.

Technical teams are investigating and options are being worked through at the moment but the outcome is likely that yesterday’s settlement will be paid tonight along with today’s so merchants will get two days in one.

This is only an indication at this stage whilst further investigations are completed.

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Ugh!

Berejiklian leadership failure by cancelling Covid press conferences

For weeks now the premier of NSW, Gladys Berejiklian has been warning that the Covid situation is expected to peak in early October, that this is when the hospital system will be under the most stress.

This morning, the Premier announced that she and her political colleagues will no longer run daily Covid press conferences.

This is an appalling decision in my opinion. Cutting opportunity for scrutiny at the time it is most needed speaks volumes and crushes trust. The decision also sends the message that infection is no longer the story, opening it up to people to be less vigilant.

The NSW state government failed to appropriately deal with the latest Covid outbreak. Their decisions relating to reducing infection were weak, late and not backed with appropriate regulations and infrastructure. These failures let Covid infections increase – landing NSW where it is today, with an outbreak at a point that the government appears unable, or unwilling, to control.

Even yesterday, when the Premier was announcing plans to open up, she made it clear that local businesses would have to do the heavy lifting to check Covid vaccine status if they wanted to trade. This is yet another pass of of the buck by a government that is a master of abrogating responsibility.

It is right at this point, at the expected peak of Covid infection rate and hospitalisation, that people in the community crave leadership, they crave faith that it will be okay at some point in the future we can see. But, rather than provide that leadership, the Premier of NSW has decided, for some reason, to go into hiding.

The announcement today will negatively impact community confidence, consumer confidence. It also reduces the opportunity for scrutiny, which weakens democracy. This announcement today is bad for business. I am surprised that the Premier and her cabinet don’t see or understand this.

Right now, confidence is fragile. It needs support, from political and community leaders, for it is this confidence that fuels economic activity.

With the Premier Berejiklian and her state government going into hiding, it will be up to local small business more than ever to comfort and lead, through offering safe and easy shopping, connecting with the local community and helping keeping the wheels of commerce flowing. I see so many local small business retailers doing this every day. They should be proud of their service and the comfort this provides.

The announcement today by the NSW Premier to reduce opportunity for scrutiny would usually be ripped apart by news outlets. I have my doubts that will happen given the lobbying role News Corp and Nine Media outlets seem to play for the conservative side of politics.

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Social responsibility

News Corp. subscription systems failures let home delivery customers and newsagents down

I hear from newsagents about failures in News Corp. notifications about newspaper home delivery situations, about how the News Corp. notification is evidence of internal systems failures. Here is a recent example – they ask the delivery to restart on August 11 while then noting that the paper was failed to be delivered on August 10 to the same customer.

I am told no amount of reporting situations like this to News Corp. helps as the company ignores such reports.

So much for News Corp. providing newspaper home delivery customers a better experience than local newsagents provided – as the company claimed would be the case in its letters to customers.

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Newspaper distribution

Yes, magazine oversupply is still a thing for Aussie small business newsagents

Here is solid evidence of magazine oversupply by Ovato, through their tech systems and their expert approach to magazine distribution.

Based on the supply / return data, which they have, this store should be getting 3 or 4 copies of this title, and not the 10, 13 or 15 copies it has been getting.

What a waste of time, money and space for this small business retailer.

A failure to supply inventory based on current sell through data is one of many operational issues the folks at Are Media will need to address when they take control of Ovato.

Over the years, many newsagents have given up having this fight with Ovato, because they get nowhere at all.

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magazine distribution

Emailing and then calling … ugh!

It happened again today. Someone emailed about a matter and called a couple of minutes later. They started the call saying I just emailed you. They then proceeded to cover each point in the email.

What a waste of time duplicating communication.

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Ugh!

What Ovato could learn from greeting card companies

For many years I have urged management at Ovato, formerly Gordon and Gotch, to provide newsagents with the ability to control their own magazine supply. My argument was that giving newsagents control over range of titles and quantities received would see newsagents stock and sell more magazines.

The historic master / servant relationship with newsagents got in the way.

The leadership of Ovato did not like the idea and did not deliver this. They have maintained a system through which it is difficult for newsagents to manage their magazine title range and the quantity of inventory received. And, despite having access to accurate sales data, this appears to play only a moderate role in supply decisions within Ovato.

Magazine publishers should be frustrated buy this and here’s why …

For decades, newsagents could not easily choose the greeting cards they stock. The card companies had an antiquated and opaque process, that newsagents, for the most part, were happy to go along with.

Over the last two years, several major card companies have provided newsagents with complete control over ordering, including the ability to replace one design with another.

Looking at comprehensive pocket level before and after sales data, I am confident in saying that providing newsagents control over what card designs they stock is a key factor in above average growth in card sales. I am talking here about 20% and more year on year card revenue growth – even with the Covid period sliced out of the data.

The data study I have undertaken included businesses that did not change card suppliers – those that controlled what they stock grew revenue several times more than those that did not.

The message for magazine publishers is simple – if you want to grow magazine sales in the newsagency channel, give newsagents full control over what they stock. In my opinion, the failure of Ovato to enable this has held back magazine sales opportunities.

Are magazine publishers frustrated? probably not since they do not actively engage with newsagents. It’s one-way and sales of their titles suffer as a result.

Thankfully, some card companies have realised the commercial value to them from giving retail newsagents more control over what they stock. Kudos to them.

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magazine distribution

Why are newsagents the only outlet for the House of Wellness magazine?

News Corp. is promising the next issue of the House of Wellness, the crappy (my opinion) ad platform from Chemist Warehouse. News Corp. is clear that it is only available from newsagents in their FAQs:

FAQ’s

Q. How can I get a magazine?

A. Purchase The Courier-Mail on Saturday April 3 or The Sunday Mail on April 4 and present the original token from the newspaper at participating newsagents to redeem.

Q. Can I get the magazine from supermarkets or petrol stations?

A. No, the magazine is only available from participating newsagents in QLD.

Q. Can I get more than one magazine?

A. No, one magazine per purchase of the paper. If you would like a second copy, you must purchase a second copy of the paper.

Q. Do I need to pay for the magazine?

A. The magazine is free with purchase of The Courier-Mail on Saturday April 3 or The Sunday Mail on April 4, while stocks last and only at participating newsagents.

Q. Is my newsagent participating?

A. Click here to see a list of participating newsagents.

Q. The magazine isn’t inserted into my paper, what do I do?

A. The magazine is not inserted in the paper. You will need to visit a participating newsagent, present the original token from within the paper purchased on April 3 or 4, then you will receive your magazine.

So, why is the House of Wellness only available from newsagents? I suspect because supermarkets, convenience outlets and petrol stations have not agreed the paltry terms for handling this advertising product, because newsagents are the only ones prepared to accept less than minimum wage for handling this title, for putting top with people who buy their paper elsewhere and come to the newsagent for the free title, people who will be angry they had to wait in line to get their free title.

House of Wellness is not worth the time or space it will take up. There is no upside for newsagents in my view. Every time we agree to sell ourselves short, it reinforces that we are agents, not retailers.
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Newspapers

Are Media / Australian Geographic campaign preferences Woolworths over local small business newsagents

Are Media has launched a campaign that preferences Woolworths over newsagents. What is utterly stupid about this is that newsagents have access to a broad range of Australian geographic products that they could promote with this campaign to make it more successful and valuable than Woolworths is doing. B&T has an image of the in-store execution.

Yes, it’s a floor display unit setup by a visual merchandiser with little or no QWWoolworths engagement.

Had Are Media and National geographic done their research and partnered with newsagents, the display would have been better integrated with the business, better connected with those working in the business.

Yes, this is a stupid decision and those responsible should have been able to make a better decision, for all stakeholders involved. This quote from sally Eagle is particularly galling:

Sally Eagle, customer director at Are Media said: “As category leader, it is incumbent on us to support other magazine publishers and the entire magazine category, particularly Australian made magazines and of course the retailers which are so vital to our collective success in connecting our brands with audiences across the country. We’re delighted to be working with Australian Geographic and Woolworths on the first of planned partnerships with other publishers and retailers.”

Sally – you are not supporting the entire magazine category with this single retailer focussed promotion. No, you are seeking to attract magazine shoppers from newsagencies, the retailers with the best magazine range in the country, and land them in Woolworths, a retailer that cares little for the medium and probably only engages when you pay them in one way or another extra to do so.

With the awesome Australian Geographic products that we already stock and our deeper engagement with that brand, we are a natural fit for this promotion.

I’d love to know how the dollars flowed to make this a Woolworths promotion. Which businesses paid for what. For example, is Woolworths paid for the floorspace? Newsagents place displays like this for free? Are Woolworths staff trained? In my experience, not beyond the very basics? Does the campaign help grow the Australian geographic brand engagement? Unlikely with no branded allied product available in Woolworths – or if it is, it is not located with this floor unit.

Underlying this Woolworths, Are Media and Australian Geographic is a desire to attract magazine shoppers to Woolworths. Thanks for that to all involved.

Yes, this is frustrating. In real terms, newsagents make less out of magazines today than a few years ago. That a key supplier ignores them for good promotions, like this one, challenges one’s support for the category.

To the ex newsagents preparing to comment that nothing has changed: Yes, you are right, good for you. Some newsagents have responded by quitting the category. For others, the foot traffic and GP$ are too much to ignore.

To anyone at Are Media preparing to say newsagents are important, we respect the channel: Words are meaningless when not backed by action.

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Competition

Magazine oversupply continues

We usually sell 2 or 3 copies of Maxim magazine. The circulation experts at Ovato think we need 40 copies of the latest issue. What a waste.

The circulation experts at Ovato will have an explanation, a glitch, human error or some such thing. I’ve heard it before plenty of times.

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Magazine oversupply

Did Better Homes and Gardens even check newsagents for their where to buy back to School article?

Better Homes and Gardens has published a story on the beside all for back to school. Here is the part of the story that connects with our channel.

Stationery

Typo

Flatlay of stationery
Typo

Save with back to school deals on stationery items at Typo. Buy 3 ‘Campus’ notebooks for $15, 3 pens for $5, and pencil cases starting from $9.99. ‘Getting it done’ stationery bundle, $55.

Available at: Typo

Kikki.K

Receive a free weekly planner (valued at $19.99) with every $50 purchase.

Available at: Kikki.K

Booktopia

Save up to 75% off book bargains.

Available at: Booktopia

Dymocks

Save on Dymocks’ range of notebooks, pencil cases, lunch boxes, educational games and flash cards.

Available at: Dymocks

Officeworks

Officeworks are running a back to school price beat guarantee. If you find another store offering a lower price on an identical stocked item, Officeworks will beat the price by 20%.*

Available at: Officeworks

*Terms and conditions apply.

I know of newsagents who beat these named suppliers.

I wonder how the journalist who wrote the article did their research? Did they focus on national businesses, advertisers … what? Newsagents should be listed if they have the best deals. Also, newsagents are more likely to support the local school and local community groups.

It’s frustrating that small businesses are left out this way.

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magazines

Late barcode duplication advice from Ovato

Ovato sent this advice to newsagents today at 2pm, not to the software companies that are on the front line for handling such matters. Ugh!

Please be advised that Mr Wisdom Sudoku #128, on sale today 21st January, was incorrectly printed with the same barcode (931339800258901) as Better Homes & Gardens Sudoku #9 which went on sale 28th December.=

Could you please ensure you maintain both titles on sale for their respective on sale periods and process returns against the correct title code when each title recalls.

Note that this may require you to review any returns processed by your POS system, should you use a POS system to process your returns.

For agents on NPR (No Physical Returns), we will exclude these titles from your NPR calculation due to the errors that may occur in scan sales.

Mr Wisdoms Sudoku
Title code: 20638
Issue code: 1280
On sale: 21/01/21
Recall date 18/03/21
RRP $4.99

Better Homes & Gardens Sudoku
Title code: 17428
Issue code: 90
On sale: 28/12/20
Recall date: 18/02/21
RRP $4.99

Please accept our apologies for the inconveniences this may cause.

Thanks for your support.

What should Ovato have done?

  1. Picked this up earlier.
  2. Advised the software companies first, to leverage their own comms channels with newsagents.

In their note they say should you use a POS system. They know exactly who uses a system. Seriously!

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magazine distribution

Appalling customer service from Nine Media’s Fairfax business when I try and cancel by subscription to The Age

I decided to cancel my subscription to The Age a three days ago. I figured it would be easy – log into their website, select my account and click cancel from the next billing cycle.

I figured, 1, 2, 3 and I’d be done. I figured that because that’s how online works. It’s easy, self-serve, fast.

But, not at Fairfax Media. Their approach is broken, cumbersome and laden with barriers.

I logged in. Then, I had to log in again when I selected my account. There was no explanation as to why I had to log in twice. I guess it as because they are two different tech systems.

Anyone, I got in. But once in, there was no button I could click to self manage the account.

I had to call or email the. So, I selected email, thinking I could write an email. But, no, that would be too simple for Fairfax Media to implement.

On selecting email, it took me to another page that I had to complete. They asked for my subscriber number. I went back to my account page, there is no subscriber number. I checked and checked and could not find it. So, back to the web form, I completed the details including having to tell them why I wanted to cancel.

But that was not enough. They will consider my request. They emailed suggesting I call them if it is a time sensitive request. It’s not, so I’ll let it play out. Gees, I hope they don’t call. I don’t want to speak with anyone. But … here we are 3 days later and I’ve heard nothing.

As I said, appalling customer service from Nine Media’s Fairfax.

If I was a Fairfax shareholder I’d be thinking about the manpower cost of such a broken subscription management system. Talk about broken, old-school, out of date. It’s a joke. My own small business subscription related consumer websites offer far better customer self-service experiences.

It’s simple really, Fairfax Media. I want to cancel my subscription. These hoops and barriers feel like it is a business strategy to keep customers, by making it too hard to quit.

The experience turns me off. It makes me want to tell others how bad dealing with them is.

The approach by Fairfax Media to managing online subscriptions is what I’d expect from a dinosaur business, a business out of touch with online. Oh, wait…

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Customer Service

Late newspapers today in NSW

Today’s Daily Telegraph was printed hours late, reportedly because of the State of Origin.

As a consequence, you have newspapers being delivered now and, likely until mid morning. From a workplace health and safety perspective this is not ideal. You have more traffic on the road now at 8am compared to 5am, plus more pedestrians as kids are off to school.

Already, newsagencies are being hit with calls from irate customers. I suspect the publishers will be, too.

Newsagents have contacted me, frustrated with poor communication from News Corp.

What a mess.

If you are a newspaper customer and reading this, please don’t be anger at your local newsagent. The lateness is 100% the fault of the newspaper publisher.

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Newspaper distribution

News Corp. and IGA giving away newspapers, again!

I have seen several IGA supermarkets promoting free News Corp. newspapers for shoppers who spend $20 or more in-store at the IGA.

One newsagent told me that in their situation, two doors away from an IGA running the promotion, they have seen News Corp. sales decline – they think because of the promotion.

I get that News Corp. does what it needs to do to achieve circulation / readership goals for ad revenue targets. I think the regularity of these deals speak to challenges for the company getting people to pay for its product.

What is a newspaper worth? Shop here and you pay $2.00. Shop at IGA for it’s free if you spend more than $20.00.

What diminishes the value of the newspaper product further in my opinion is the mechanic of the free paper at the IGA. The offer is not consistent. Sometimes it is offered while other times it is not. The wording is especially inconsistent.

That checkout counter offer of the free paper opens conversations about the papers and there is where brand damage can be delivered. Simply by offering a free News Corp. paper invites a response. Given the extent of growing negative feelings toward News Corp. in some locations this year, I would have thought that opening the door for sharing opinions was not ideal.

A quick check of Twitter shows plenty of people talking about the latest News Corp. giveaway, like this one:

And this one:

Yes, these types of deals have been around for years. That does not mean we should ignore them and consider the challenge they present to retail newsagents.

Oh, and some in News Corp. may say the free paper today could convert someone who goes on to purchase from the newsagent in the future. To this I would say, show me the evidence of this. Like the claims for trickle-down economics, I suspect it is wishful thinking not backed by evidence.

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Newspapers

Is Westfield referencing retailers that take the Klarna buy now pay later payment?

Westfield has written to retailers outlining Christmas plans with a key investment appearing to  support the Klarna buy now pay later payment platform. The material talks about in-centre events and floor decals to drive shopper engagement with the Klarna app. The obsession with Klarna doesn’t feel supportive of retailers who have well-established buy now pay later arrangements.

While the Klarna rate to retailers is lower than the cost of Afterpay, it is higher than others.

As a Westfield tenant, I think they should promote shopping in their centre and not involve themselves in how people pay their retailers.

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Ugh!

Banks closing branches, removing ATMs, hurting small business retail in Australia

Under the cover of Covid, banks are closing branches in Australia and removing ATMs in a shrinking of banking access. There is no consultation with customers, just an announcement or a sign on a front door.

Local bank branch closures are adding considerable cost to small business retailers in Australia.

While many bank branches closed under the first Covid lockdown back in March, plenty of these have since subsequently closed permanently.

In one of my own retail situations, in suburban Melbourne, our local bank branch, which is in walking distance, is closing. We face a 10 minute car drive, which means a roster change to deal with takings banking and disruption if we encounter a change shortage.

The closure of local bank branches makes going cashless more appealing to retailers. Maybe this is what the banks want. The retail network is expensive to maintain in terms of real estate and labour I guess.

While the closure of bank branches in March made sense, the continued closure after that lockdown ended was the first indication that banks were reconsidering their retail engagement.

Adding to the considerable number of bank branches that have closed in Australia, the closure of ATMs is impacting the shopper experience as well as the business owner experience. In another part of suburban Melbourne, one busy shopping street has seen five ATMs ripped out by banks.

Again, in my own experience, a local ATM at which we banked cheques, which are still a thing, has been removed, necessitating a drive as opposed to what was a short walk.

I get that all businesses are reassessing the infrastructure that is appropriate in a Covid and post-Covid (if it ever happens) world and that it makes sense that banks do this too. However, banks provide key services to Australians and local small businesses. They have a social responsibility to maintain these services. The extent of local bank branch closures in Australia will impact small businesses.

Again, in our own situation, for one of our shops, we are opening an account with a bank we have previously not dealt with as they have a branch a few minutes walk away and that is appealing compared to having to drive. It’s not ideal, but it is better than adding to our labour cost.

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Social responsibility

Some newsagents are yet to be advised about a price increase for The Australian, which kicked off Oct. 5

Communication from News Corp. has failed again with plenty of newsagents telling me they are yet to be advised of a price rise for The Australian and The Weekend Australia that started October 5. Here is part of the letter from September 28 I was sent by a newsagent yesterday.

The poor communication has cost some newsagents money given the poor approach to product data handling by the company.

This would never have happened 10 or 15 years ago. Back then, News Corp., folks made sure newsagents knew in advance as well as software companies – so that newsagents had the current advice a week before any cover price change. Now, with so much institutional knowledge lost in News Corp. it is no wonder newsagents who were not informed last week are furious.

News Corp. like to tell Australians how to live their lives. If only they sorted their mess out first.

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Newspaper distribution

Richard Glover on his newsagency experience as a kid

In the pages of Spectrum from the SMH and The Age last week was How porn and a price hike helped this newsagent’s son, a terrific short memoir from Richard Glover about his experience as a son of a newsagent.

It’s a good read. My only wish is that he reflected on newsagencies today as they have come a long way from his memories. Glover wrote:

These days, newsagents rely on gambling, working away at counters in which the air is heavy with scratch-lottery dust. They struggle on – despite falling sales of almost everything on which we used to rely – cigarettes, greeting cards, newspapers, pornography and the long-banned headache powders.

I’d prefer:

These days, many newsagents have evolved from the days of my childhood memories. On the high street they are often the retail innovator, selling gifts, and homewares, supporting local Aussie makers and helping us connect with loved-ones in ways never dreamed of in the 1970s.

The Aussie newsagent is a quintessential business. It’s terrific to see that so many have evolved with the times.

Like many, I have not relied on gambling in my newsagency businesses for more than 10 years.

I wish people writing about our channel did more research to understand the extent of evolution from just a few years ago.

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newsagency of the future

Screen advertising in a newsagency?

I’ve heard of some newsagents receiving a hard-sell recently to put an advertising screen in their shop.

Our retail channel has a track record of failure with such screens. I am not aware of any over the last 20 or so years that have worked, from the Bill Express screen on.

In my shops I want less visual noise, not more. Also, I want to promote what I sell, not what other businesses sell.

I told the sales person who called me no thanks. They persisted. I said no thanks again. They hung up and called again. Still, no thanks.

If you are going to do digital screens in-store, they needs to be seamlessly integrated into your business, carrying your message through professionally produced content, that works for you. That takes tens of thousands of dollars to deliver.

 

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Ugh!

What products do you have that you would not suggest newsagents sell?

Asking this question of several suppliers over the last few months have revealed plenty of products that we and some other newsagents have got on to stock, and have sales success with.

Many suppliers are clueless as to what newsagents can sell. I think this is because they are clueless as to what plenty of newsagency businesses have become today.

Every supplier I talk with, I ask What products do you have that you would not suggest newsagents sell? and hope that their answer will reveal new opportunities.

Too many have a bias against items costing more than $50 when pitching for our channel. Some have bias against items of quality. While it is frustrating to see this ignorance on show, it does demonstrate that at least asking the question can get to a solution.

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Ugh!

Why is Australian Community Media rationing access to Queensland Country Life

Talking with a newsagent yesterday they explained how they were denied access to an increase in supply of Queensland Country Life by Australian Community Media.

They have been selling out of Queensland Country Life, as have their sub agents. They sought a modest increase in supply. The folks at ACM decided on an increase, but it was too small, smaller than what was requested.

Considering the increase in supply request, the newsagent looks at when in the shelf life cycle the title sold out. This can help forecast what could be sold. It is an approach that newspaper publishers themselves first used in Australia in thirty years ago in determining suburban newspaper top-up supply.

The only way the newsagent can satisfy their shop customers wanting to buy Queensland Country Life is to cut sub-agent supply, which will result in their frustration for sure.

The newsagent has a track record of excellent data and terrific results for this title. Unfortunately, the publisher appears disinterested.

I would have thought that now is not the time to be so frugal with a supply bump so as to deny certain sales of a title. I suspect advertisers in Queensland Country Life would want their ads reaching more eyeballs.

The situation was made worse by poor processes at ACM. Contact is challenging. They either want to sell more copies, or not.

This whole story is silly … silly in terms of the time the newsagent has had to spend on as slim margin products, silly in the way ACM manages contact, silly in the decision ACM ultimately made.

But it gets worse than silly – I am told the newsagent posted on the Queensland Country Life Facebook page, and they deleted the post. I posted a comment there, too, and next minute it was gone.

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magazine distribution