Australian Newsagency Blog

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Magazine publishers need to stop using newsagents as warehouses

Mark Fletcher
April 1st, 2014 · 2 Comments

storagespaceWith the cost of retail space increasing and magazine cover prices not keeping up with this and other costs of business, it’s only natural that newsagents look at operating costs. One cost we could do without is that of storing magazines with a greater than 30 day on-sale period. Once you consider the cost of storing a long shelf life title until their either sell or are returned it is often loss making.

Delayed billing does not address this issue. The only solution is replenishment drops through the on-sale based on sales.

While using newsagency businesses as warehouses works for the publisher, it no longer works for newsagents. The numbers have changed in recent years, our costs have risen far more significantly than margin dollars for some of these titles we are asked to warehouse. This is especially true those in shopping centres with higher occupancy costs and especially for titles where the cover price has not kept up with the CPI and increases in our operating costs.

9 likes

Category: magazines

2 responses so far ↓

  • 1 Bruce // Apr 1, 2014 at 8:07 AM

    We will be ignoring any delayed billing and returning as normal. Mark can you foresee any problem with doing this? We have no storeroom. Also we are currently culling mag titles. Taking quite a few back to one pocket based on sales history.

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  • 2 Wally // Apr 1, 2014 at 10:03 AM

    The problem as well is thickness of “book”. If only one will sit on shelf that is all i can carry.
    I have no storage so it either is on the shelf or returned. 1 month max and it has to go.
    This is where SBR should be used.

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