Magazine publisher offers better margin for direct supply
A niche magazine publisher has offered a newsagent a better deal for the title that what is available through Gotch. The offer came as a result of the newsagent querying why the magazine in in non newsagency retailers before newsagents get stock.
This was of interest to the newsagent as they have been a big supporter of the title. They were concerned non newsagent retailers nearby could take sales from them.
Here is part of the response they received.
You’re more than welcome to purchase the magazine wholesale direct from me if you want the magazines as soon as they come back from the printer. I sell them wholesale for $6.50 each inc GST and they retail for $12.95. I believe this is a much better profit margin than what the distributors are offering newsagents. I have a minimum order of 10 copies though, and postage is additional (just depending on quantity).
I suspect this price of $6.50 a copy is lower than the price charges to Gotch by the publisher.
It is dangerous for any publisher to open their own direct supply relationships as it damages the overall offer and could confuse return arrangements and other aspects of the supply model.
I’d like to see this publisher at least stop supplying now newsagency retailers after newsagents have the title. Then, I;d like to see them invest in our channel ahead of others as we are the magazine specialists.
Bauer Reader Rewards could result in data being sent to Network Services
Re my earlier post about XchangeIT claiming newsagents are incorrectly sending sales data to the new closed Network Services. There is evidence the Bauer Reader Rewards barcodes that are required to be sold when redeeming magazines are resulting in sales data being sent to Network.
XchangeIT has advised that such instances are not part of their advice to newsagents of a problem. Evidence from some newsagents suggests otherwise.
The ridiculous distribution of Stationery News continues
We received another issue of Stationery News magazine today. This is a magazine for stationery retailers. We did not order it. It has not been supplied for sale in the newsagency. It has been sent as firm sale – this means we cannot return it unless we jump through time-consuming hoops.
I think the supply of Stationery News in this way to small business newsagents is unethical and socially irresponsible.
Yaffa is the publisher. This is after advising we have no interest in this magazine and the subscription that is being unethically forced on small business newsagents around the counter. In addition to getting a credit we ought to be paid for the time this unwarranted supply is causing not only us but other newsagents around Australia.
Shame on all involved.
Checking the Yaffa website tonight I found this:
Each title at Yaffa Media is led by a team of experts in their respective field that are dedicated to providing quality products designed to inform, entertain and inspire.
It also appears Yaffa Media has people who push a title onto retailers despite the retailers saying they do not want the title, causing those sent the title to have to spend time and money to geta credit for the magazine they did not ask for and do not want.
What’s with the Stationery News reissue to newsagents
It seems the latest issue of Stationery News has been sent to newsagents, again. This time marked as a firm sale – meaning they are unable to return it.
This appears to be a mistake by Gotch. The challenge is the Gotch communication lines are clogged and emails are delayed in getting a response.
I’ve had at least ten calls plus emails. Here is one that sums up the situation:
This morning on the Gotch distribution they supplied a magazine, more a pamphlet, called “Stationary News” as a firm sale item with a cost of $55 and a retail of $60.50 ! When I rang Gotch , after a 40 minute wait, the helpful customer service office said that he had received a few calls in regard to it and he had lodged a query but they had been unable to work out why or how this had been allocated. He also stated that the more contact that they had from Newsagents the sooner something would be done about it.
News Corp. is asking newsagents in SA to give away a local newspaper for no compensation
News Corp. has taken on charity status with its request (offer) for retail newsagents in South Australia to give away the Messenger newspaper for free.
This does not make sense to me at all.
If you think this will attract traffic it will not, in my opinion.
News is asking newsagents to provide a service. This massive company ought to have the decency to offer fair compensation.
I would be shocked if any newsagent says yes.
Some newsagency suppliers need to understand the importance of barcodes on products
It frustrates me when I hear of a newsagency supplier using the same barcode on multiple products. Retailers cannot adequately track sales in such a situation. Suppliers who do this deny newsagents the opportunity to understand what is happening in their business.
How do you understand the performance of your card department with, say, 800 different designs, where a barcode is shared with fifty to one hundreds designs? You can’t! Only the card company can analyse performance in such a situation.
This is poor service of the retail newsagents by the supplier, the card company in my example above. It is disrespectful and not best practice.
While newsagents can produce their own barcodes for cards, they should not have to as doing so would be an extra cost and take extra labour.
We need to be more demanding of our suppliers on these matters.
The more suppliers help me more easily understand the performance of inventory in my business the better for me and for them, and the better for my customers.
We are not cottage industry retailers. We are a strong national channel competing with many national retailers. One way we can effectively compete is with data and business tools of a standard equal to our competitors.
The House of Wellness is not a gift with purchase
Newsagents were paid by News Corp. to hand out the 100 page The House of Wellness magazine with newspapers last week. The compensation did not cover the cost of the service. The product itself was pitched as a “gift with purchase”.
I looked through the magazine on the weekend. This is no gift. It’s an advertising catalogue with articles promoting advertisers. While I am not the target consumer, I found little value in the publication.
Any supplier wanting newsagents to promote a gift with purchase ought to ensure the gift is a genuine gift – rather than an extension of their advertising platform for which newsagents are poorly paid to distribute.
News Corp. undervalues newsagents with House of Wellness freebie
News Corp. is paying small business newsagents twenty cents per copy of The House of Wellness freebie handed out.
News Corp’s expectation is rooted in decades of history with our channel, history that is not so relevant today.
While some newsagents will like this type of campaign, most will not, they will see it as an annoying activity they have to undertake in the face of concerns at how News Corp. may treat them if they refuse.
For the twenty cents per copy, News Corp. expects newsagents to:
- Receive the product and store it for up to a week it ready for the promotion date.
- Put up promotional posters. Install promotional shelf wobblers.
- Have the freebie on hand at the counter for give away.
- Collect tokens from customers handed for redemption from customers who have not purchased the newspaper from the business.
- Deal with freebie seeking customers who tend to be more demanding than people who actually spend moey with you.
If this issue of The House of Wellness freebie is like the last issue, it is an advertising catalogue.
In my opinion, the twenty cents per copy is disrespectful. It does not provide reasonable compensation for what is expected. It is not a socially responsible payment from News for what they expect of newsagents.
My other concern is the disruption to the business promoting something of little or no relevance. The posters and wobblers are visual noise distracting from higher margin products newsagents can sell. We need less noise and not more.
Newsagents who will hand our the freebie might consider doing so without the posters and wobblers. I can understand that. Others while choose to not engage at all, and I can understand that.
News Corp. needs to be more respectful of newsagents in structuring these marketing activities for its clients. They need to price fairer compensation for newsagents. Otherwise, fewer newsagents will participate and, I suspect, more of the freebies will end up in the trash.
Too many old school suppliers to the newsagency channel still don’t get it
The newsagency channel has changed … because retail has changed because how people shop has changed because how people get news and information has changed.
Too many of our old school suppliers don’t get it. They think they can continue pay party commissions, expect premium space and expect us to focus on them ahead of where we make our real money.
Too many old school newsagents don’t get it .. you know, those who run their businesses as they did 10 and 20 years ago are in businesses with no future. these are the businesses closing, as they should.
Newsagent associations don’t get it. They focus on old school stuff and try and copy proactive marketing groups for new stuff.
I have spoken with three newsagents today who are being treated badly by suppliers because they are putting the needs of their businesses ahead of individual supplier needs. The newsagents are being smart. The are building stronger businesses from which the suppliers will most assuredly benefit yet the suppliers are too arrogant and stupid to see this. They think they can demand the newsagent serve them ahead of everything else.
My suggestion is if a supplier is being too demanding, beyond the value of the return of their products for the business, quit the supplier. Be done with them. This is true for any supplier including magazines and newspapers and lotteries. You own your business. The needs of your business have to come first.
And if you are paying association fees expecting the ANF to work on these issues for you – save your money, back yourself instead.
Why did News Corp. cut newspaper supply to small business newsagents?
Why did News Corp. allocations experts cut the supply of newspapers on the launch day of the Dr Seuss national promotion being run by the company to increase the sale of newspapers?
The cynic in me wonders if this is to do with shifting traffic from newsagents to supermarkets.
I heard from several newsagents yesterday about cuts to their supply. Some were cut to a lower supply than their average net sales over recent weeks. There is no evidence in sales data for the cost, hence the cynical wonder.
The Dr Seuss promotion is excellent: timely and popular. Right now is when supply ought to be boosted rather than cut – especially in newsagencies where engagement is far more professional and whole of business.
Footnote: it is usually after I publish a post like this that I get a call or an email along the lines of – I don’t read your blog but someone told me to look at this blah blah blah. The thing is, I know publishers read the blog. Who cares? What matters is that what I have written has happened. It is real. No, I will not tell you the names of the newsagents. Go to your ‘smart’ allocations people and ask for a list of all newsagents for whom they cut supply yesterday and this week, ask them why.
Yes, Bauer Media does want newsagents to promote a competitor
Here is the flyer to which I referred here yesterday from Bauer Media provided to newsagents asking them to promote a Myer department store sales catalogue in their newsagencies, a catalogue that promotes items newsagents sell. Bauer is not paying newsagents the traditional margin of $1.4875 for handing out this ‘publication’.
Neil Mitchell’s puerile engagement with adult colouring
On the way to a supplier meeting today I caught Neil Mitchell on 3AW talking about adult colouring. What for many is a relaxing passion, Neil made out to be puerile. He sent out his program producer to ‘research’ the market. This chap when to a WH Smith store near the 3AW studio where encountered a small range of books – seven or eight titles I think.
Check out the range at newsXpress Beers Port Lincoln as of earlier this week. 108 titles – beautifully displayed.
What Mitchell made fun of is a serious pastime for many and a valuable category for engaged newsagents. Sure it is a craze right now and will fade, but it will remain an important activity for plenty.
Mitchell made out it was a new thing when, in fact, many of us have been engaged since last year.
3AW is owned by Fairfax. fairfax supplies newsagents. Mitchell ought to have been better advised and the segment better produced.
News Corp. late advising newsagents on DVD promotion
News Corp has been late in providing newsagents information about a DVD promotion to kick off a week from now.
In an ideal world, News Corp. would advise software companies two or three weeks out so they could write advice for proper implementation of the offer using gar various software packages.
What happened this week is that News Corp. in Queensland advised newsagents and newsagents advised the software companies. Then, other News Corp. offices sent out their advice.
Newspaper publishers need to pay more attention to helping newsagents run their businesses more efficiently. Late notice about promotions and not engaging with all stakeholders, such as newsagency software companies, costs newsagents time they don’t have.
People who stop on escalators frustrate me
I don’t get it when people step on to an escalator and stop. I am not talking here about those with trouble walking or who are older – no, I am talking here about healthy people, especially those who could do with climbing some stairs.
It’s like some people crave not exerting themselves.
What frustrates me is these people who like to stand still get in my way.
When I get on an escalator I want to walk the steps, I want to keep moving – for the exercise and to save time. They are slowing me down. And when I try and get past, often they express frustration.
It’s like I have to stand still because they want to stand still.
The escalator is a shared conveyance. It is not there to slow us all to the same speed. Just like the sidewalk, it is a conveyance we can use to travel at the speed that suits us.
If their is a staircase next to an escalator I will usually take that unless it is too crowded. However, is the escalator is the only choice all on it need to be respectful of each other.
In some countries they have a line in the middle of each escalator step and a sign saying stand on this side and move on that side. I like this because people can choose what they want.
If people want to stand still and be conveyed without investing their own energy fair enough – but don’t block me. There is no time for unity on the escalator – we all have our own lives to live. Get to of the way for me and I will not encroach on your space where you stand.
Fair enough?
I guess I could move to Wyoming where I understand they only have tow escalators, both of which are in a bank.
Wrong barcode on Picture magazine discount pack frustrates newsagents
Years ago if Network Services sent a magazine with a wrong barcode they would contact newsagency software companies as they are usually the first port of call if there is a problem. Not any more. Network sent a notice to newsagents and this eventually made its way to the software companies. Poor customer service from Network.
Adelaide Advertiser alienates SA newsagents
Check out the ad in the Adelaide Advertiser promoting a Crows sticker. What the ad does not say is that it’s available in all newsagents. Promoting Newspower is disrespectful to other SA newsagents – branded and unbranded.
Newspower location numbers are down in SA so why News Corp. would hitch this promotion to only that brand does not make sense.
Disappointed to see News Corp. make Woolworths look better
I was disappointed to see this as in The Australian yesterday promoting an exclusive to Woolworths gift opportunity with Delicious, Australian Country Style, Taste and other News Corp. magazine titles. News Corp. should be investing in the newsagency channel instead of Woolworths. We do more for their magazines than this supermarket giant.
Bauer Media trials Woman’s Day price increase and botches newsagent engagement
Bauer Media is trialling a price increase for Woman’s Day to $4.40 in Western Australia while at the same time offering it through Coles for half price and continuing to chase sales by including it in a discount pack at 33% off.
What makes the WA price increase trial worse is the poor and after the event communication by the company and their appalling handling of the trial from an operational perspective – disrupting customer service in retail and home delivery newsagencies because of a fundamental lack of understanding of how newsagents manage each of Woman’s Day through their businesses for home delivery and cutaway customers.
Bauer created a new title code for the eight week trial, disconnecting from the usual title code which is used in newsagency software systems for managing deliveries and putaways. From what I understand they did not tell newsagents until after it started.
If what I am told is true, those isresponsible for newsagent liaison for this trial ought to be reprimanded for a botched job as they have failed newsagents and their customers.
Check out the subscription offer in this magazine
While I accept subscriptions are important to the sale and distribution mix of magazine publishers, sometimes they go too far, abusing our low cost retail channel for completely selfish gains. Take the latest issue of Men’s Muscle & Health. The issue has a card inserted which partially covers the title in the pocket behind. On this car they pitch a subscriptions deal and a digital product which I suspect is their long term game. Either way, it’s not a card I’d leave in the magazine if I had it on the shelves.
Nic & Rocco reissue of damaged stock by Bauer wastes newsagent time and money
Almost a year ago, Bauer Media issued Nic & Rocco Sweet Sensations. I blogged about it at the time. Today, they sent it out again. This time it’s stock that has been around the block. Many copies are damaged.
What a waste of time and money! What an appalling and unfair treatment of newsagents. I consider it to be unethical.
There should be no reissue of any title without newsagent permission. Bauer demands we pay them on time yet they do not provide reasonable levers with which to control our level of indebtedness.
Shame on those at Bauer who facilitated this abuse of newsagents.
I’m early returning Nic & Rocco Sweet Sensations.