The frequency of these bagged magazine offers from Bauer has increased significantly this year. They will say they’re getting sales growth as a result. I don’t see it in the data. Regardless, I am worse off if I sell these titles if the sale of a discount pack results in selling less of the titles inside.
I am told that our major channel competitors are compensated at the full cover price of the magazines in the bag. The only way to know for sure would be to see the billing details to these major competitors – something we will never see. All we can do is speculate. My certain speculation is that we are not being treated the same as our major competitors when it comes to these discount bags.
Out of respect for newsagents, Bauer should disclose their arrangement with our competitors and provide evidence of this.
The other factor for newsagents is the space cost. Since we get the original titles too we have to find another pocket – the bagged item is like an additional stock item for us.
dirt action mag that arrived yesterday (wed) is bagged with 3 mags inside. we only allocate 1 pocket for this title and only one will fit.
answer early return
We also have a reduction in supply of the original titles which makes it very difficult to supply subagents and keep a reasonable offering in store. Our experience is a decrease in sales as a result.
The other problem I think is whether Bauer did their research on what the market reads. What if some like OK but not SHOP. or vice versa. It doesn’t matter that the magazines are cheaper to buy in their bag. Last week it was June Cosmo and NW. They should not have done that considering the July Issue came out on Monday. Waste of magazines.
DIfferent company, same system, same oversupply, same everything.
Like old Bill said: “A distributor by any other name would smell as s%#t”
Mark, You have raised some valid points and I agree with the general argument. However in the interests of disclosure and to end the speculation would you care to enlighten newsagents on what newsxpress newsagents receive from their preferred suppliers in terms of margins, payment terms etc that other newsagents don’t?
Nice conspiracy embedded in your question nelson. This blog is not a newsXpress blog and never has been. I write personally and always have. There is no speculation I have heard. What have you heard.
Oh, newsXpress newsagents receive no bonus margin from any magazine publisher. I’d appreciate you advising those you speculate with.
I didn’t suggest this was a newsxpress blog merely asked a question. I didn’t mention magazine publishers either I said preferred suppliers and you didn’t answer that question. You have suggested that a supplier may be giving better terms to a specific customer and I am asking if newsxpress receive more favourable terms, better margins etc than what other newsagency do from any supplier.
Get a life Nelson buddy. None of your business.
Hmmm David wouldn’t woolies etc probally think along the same line
Nelson, the details of preferential terms between newsXpress members and 130 or so suppliers is confidential between those parties. Yes, there are excellent preferential details. That’s as far as I will say.
My post was about magazines. You have tried to make it about something else.
Mark as much as i would love to know what terms the super markets are on wouldn’t they be thinking exactly the same way you are thing with regards to being confidential .
ps love the newsXpress plug, 130 suppliers with excellent preferential detail.
Shauns -Exactly my point it is confidential between the parties involved and good luck to them.
Mark – I was just trying to highlight what I felt was double standards. You are seeking answers through your blog from others that you are not prepared to answer.
Shaun and Nelson this is different in that the Bauer argument has always been newsagent competitors are on 25%, the same as newsagents. I am told there is a second payment re these bagged products and that it’s a channel approach rather than a retail trading group approach. Quite different.
I’d believe it happens. What is bad about is that we are treated like fools by Bauer when they say everyone’s on the same commission.
what if newsagents early returned or break up all the bundles so Bauer can see that bagged titles are not working for some stores and stop the allocation.
gary go slap yourself 🙂 distributors make money from moving magazines, they don’t care if it works or not.
Mark, from my recent experience in both publishing and distribution the deals for bagged magazines don’t differ per channel. It’s all 25% or all 30% etc . Im not privvy to all publishers but quite a few and this is the way it is. I read some of the stuff on here and wonder who makes this stuff up and tells you.. Most of your sources or comments such as ‘I am told’ are wrong. do I like bagged magazines, No. Do I think retailers should be paid more to take, Yes. Try getting Bauer, Universal or Express to agree to it is another thing! I’d start by lobbying express and universal the main offenders…
Jeff, We are talking about two separate issues.
While I am frustrated with thick bagged magazines and the space they take, this particular post is about the Bauer strategy of bagging current issues of two different titles at a discount to the regular cover price for both.
My source says that Bauer does compensate others for the ‘lost’ margin dollars.
Jeff (the other Jeff) these bagged magazines are different to what we get from Universal and that’s what Mark is on about. I agree we’re being ripped on.