Month: October 2008

No!. It is not time to kill off Universal Magazines. It is, however, time to develop a magazine supply model which is fair to independent publishers such as Universal Magazines, Australian newsagents and consumers.

I published a blog post here under this headline on October 29, 2008 in frustration about my inability to control the supply of product from Universal Magazines. After years of getting nowhere with suppliers on achieving an equitable supply arrangement for many I felt I had to strike out and bring the supply model issue to a head. That morning, Universal was on my mind because of what I saw in my shop.

In the months since the initial blog post, Universal executives have dug deep into the magazine supply model to understand why I and other newsagents who commenter to the post were so angry. The result of their investigation and reflection is improvements to processes and around the supply of their titles which did not exist last year.

From my own face to face discussions with the folks at Universal I also understand more about their goals. Interestingly, we agree on many discussion points. It is the magazine supply model between their business and my newsagency (and newsagencies around Australia) which is the barrier to an idyllic relationship.
magazine distributors lept to the defence of Universal quickly in October last year. The reality is, the blog post was more about them and decisions they make and not so much about Universal – it is breathtaking that they did not out their role in the problems at the time.

Hopefully, over the next few months, progress will be made on the model so that independent publishers and Australian newsagents can achieve a more mutually beneficial and rewarding relationship.

February 10, 2009.

For transparency, here is what I wrote back then:

Universal Magazines is the most financially inefficient publisher in Australia in my view, based on data I have seen. Oversupply and long shelf lives mean that their titles are more often cash-flow negative for small business newsagents than not. No amount of representation appears to be able to resolve the situation. The only option is to take the step to ban all titles from Universal Magazines.

This would mean that we no longer carry: Backyard Design Ideas, Build Home – Victoria, Build Home – NSW/QLD, Contemporary Home Design, Kitchens & Bathrooms Quarterly, Luxury Home Design, Melbourne Living, Outdoor Design & Living, Poolside, Poolside Showcase, Renovate & Extend, Sydney Living, Westcoast Living, Bargain Shopper Sydney 2008, Bargain Shopper Melbourne 2008, Choosing a School for your Child, Dogs Life, Life etc, Wellbeing, Sydney Eats with Cheap Eats, Complete Wedding, Crusty Demons, Dirt Action, Australian Road Rider, Trailrider, Australian Country Collections, Australian Beading, Homespun, Quilters Companion, Scrapbook Creations, and Outdoor Design Source.

While this may appear to be a drastic step, the reality is that overall we would be better off. In one newsagency, the P&L would benefit by over $1,000 by killing off all titles from Universal Magazines.

While this may seem like an unusual step for a magazine specialist to take, I see no choice given that I am not permitted to adequately control supply quantity and trading terms and given

Newsagents represent a tremedous asset to publishers. The sooner we manage ourselves as if this is true the better.

If, say, 500 newsagents decided to kill off Universal titles, I am sure that the company would take notice. Sure they may look for other retail outlets. They may also engage in useful negotiations with newsagents about fairer trading terms including payment for non performance of their titles.

So, I don’t want to kill off Universal Magazines. What I want is a magazine supply model which is fair to my business, supplies what will sell and on terms which are equitable.