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Has the ANF misunderstood the MPA magazine supply trial?

Yesterday, the ANF sent an email to newsagents lauding the MPA magazine supply trial which many here consider to not be in our interests. The email from the ANF includes this:

Some newsagents appear to have a single focus on the right to early return. If you are able to manage your supply and are able to work with the distributor to order what you need, then the need to early return would be negated.

However, the reality is when an agent has been given the opportunity to set supply, on average less than 10% of the channel actually put in any figures to set their own supply.

The rules for the trial do not give newsagents the ability to manage supply.

Newsagents cannot say no to a new title.

Newsagents cannot directly set supply.

Under the terms of the trial, supply for a new title is set based on similar title performance and print run size – both key criteria in the current model.

Either the folks at the ANF have not understood the trial rules or they are out of touch with the control newsagents need. The ANF claim that newsagents will be able to manage supply is ignorant and unfortunate.

Go to page 12 of this document from the ACCC to see the rules for yourself. If I am missing something please let me know.

On the claim of less than 10% of newsagents engaging when given the opportunity to set supply, the ANF demonstrates poor judgement in saying this. Sure, I believe the less than 10% figure is accurate. However, you have to think about the level of control newsagents think they have and they trust they have in the current system when assessing the number who engage. I suspect most don’t trust enough to bother.

Change the system to something which is genuinely fair and I am sure more newsagents would engage. If the ANF actually represented newsagents they would have chosen their words to reflect this representation.

20 likes
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  1. Mark Richardson

    The Australian Nudist Federation oops I meant Newsagents Federation have really missed the mark on this vital issue of magazine distribution.

    They have no idea of what happens in the day to day running of a Newsagency

    Now are critical of Newsagents for not managing their own supply. I do manage my supply particularly with IPS but its not a 5 minute job and in any case the magazine distributors could fix this tomorrow if they wish but they refuse

    The ANF quoting only 10%of Newsagents manage their supply , they would have got this data from a distributor I would have thought .

    Who are they working for here, their members or the MPA

    Do we need the ANF in my view NO, we need a small organization who’s sole focus is to fight for their members over issues like magazine distribution, we would be better of to pay professional people to lobby on our behalf

    If the ANF and the MPA gets their way the industry will be stuffed we all know that .

    For those of you who are ANF members the only way you will get change is to resign your membership, if enough Newsagents do this maybe the will wake up. But while you continue to feed them they will not change. Its like giving a kid a lolly everytime he’s naughty then wondering why the kid still misbehaves

    These proposed changes to magazine distribution is one of the biggest issues Newsagents have ever faced no we have to fight the fight

    If the ANF and the MPA get their way then ANF may as well alamagate with the Australian Nudist Federation because there will be nothing left

    7 likes

  2. Bill Wareham

    Below is a copy of an email I sent to the ACCC yesterday.
    “I would like to add to my previous submission by putting some facts behind the issue of over supply of magazines in my news agency.
    In 2014 I was sent a total of 1,680 titles and 54,481 magazines from the 3 magazine distributors:
    – The top 468 titles represented 90% of my sales at a sales efficiency rate of 67%.
    – The bottom 10% of my sales were made up from 1,212 titles at a sales efficiency rate of 34%
    – A total of 304 titles recorded zero sales.
    – In total I returned over 21,000 magazines.
    Quite simply the sales efficiency rates proposed are ridiculous, for example I can be sent 400% of my sales on these slow sellers under the new terms.
    It is this long tail of inefficient selling magazines, many with lengthy shelf-lives, that is strangling the industries cash-flow. This cash-flow pressure is then felt across other suppliers in the industry with a blow out in the days outstanding of their terms. Talk with the greeting card companies and ask them if they are paid in the same timely fashion that the magazine distributors are paid. No, because there is no constant threat to stop supply.
    My news agency has a total of 750 display pockets. The top titles have multiple pocket display facings. If our ability to early return is removed this unsolicited product would remain in my store at my cost for the shelf life of the product. For example many of the zero sales come from the Aust Womens Weekly cookbooks. These cookbooks are often found discounted in other outlets outside our channel, yet they are sent to us with a 2 year shelf life.
    If the MPA were serious about this issue they would utilise two of the best assets at their disposal. Our daily scan data and our individual market intelligence. With the internet access now available we should have the final control on our allocations, if so desired within a set time frame.
    When the magazine industry was deregulated in 1999, the cream of the sales were distributed among other retailers. I have no issue with that, I just have an issue that I am unable to compete on the same terms as the supermarkets and convenience outlets.
    What we need is the ability to set our own range and our own level of supply, in return for forgoing the ability to early return.
    The magazine category does not compete with other categories in our stores. Every dollar diverted from over supply of magazines to greeting cards gives me an increase in return on investment of 262% per year.
    I am happy to add this to the public record

    5 likes

  3. Peter B

    Their opening paragraph of the ANF’s email/statement gives the inference that the ANF has been a part of the process in drawing up the Code of Conduct, but draws short of outlining it’s input. I cannot find any reference to the MPA Code of Conduct on their website, emails or newsletters.(I will be corrected if wrong). The MPA application for authorisation documents only has one small entry citing ANF input as well. Are they trying to gain credibility from something they have had very little involvement in? or is their involvement representing the MPA against newsagents? The ANF obviously is now a business entity rather than a representational body.

    The ANF have no qualms in demeaning newsagents by saying they have a single focus, then a negative focus on early returns. EARLY RETURNS ARE THE ONLY SAFEGUARD AGAINST UNSCRUPULOUS OPERATORS IN THIS INDUSTRY.

    The ANF’s email was only sent out because of backlash from MEMBERS voicing their concern at this proposal. For the self professed peak body of the Australian Newsagents to disregard the best interests of the majority of Newsagents(including their MEMBERS) they are severely out of touch.

    6 likes

  4. Mark Fletcher

    Peter, I was told in the middle of last year that that up to then discussions had only involved the publishers and the distributors. Once they had a plan, the brought the ANF in. From early on, when approached about this various parties, I explained why the proposed rules were in appropriate – that they denied us the opportunity to be competitive and did not provide the tools necessary for us to be business like with magazines. While I acknowledged they were progress, I made it clear the progress was not enough. The ANF representatives should have had similar views.

    1 likes

  5. Peter B

    Mark, after the publishers and distributors brought in the ANF, did the ANF then consult newsagents, or does management at the ANF just give their own personal input, believing they are representing the wishes of newsagents, without fact finding from newsagents?

    3 likes

  6. Mark Fletcher

    Peter I am not aware of any such consultation but I am not an ANF member so may not have heard about it.

    0 likes

  7. vaughan

    Unbelievable from the ANF; so far out of touch with what’s going on and, in my opinion, have taken the easy option.
    Then again, when you receive sponsorships and the like from the people setting the rules, sometimes easy is for comfortable than getting your hands dirty.

    4 likes

  8. John Fitzpatrick

    Guys,

    This is slightly disjointed BUT I did not want to reprint the ANF message to sent to members.

    I have sent these responses to the SA Manager and asked this topic be an agenda item at the next SA Delivery meeting.

    Just not true, if you use your POS or Distribution System correctly and are up to date with updates, returns are easy to manage.

    Our supply should be managed by the Sales and Returns figures supplied via XchangeIT

    Again simply not true, in Distribution (where we DO NOT own the Rack Space), the Subagent decides when an item will be returned to manage their cashflow.

    Magazine Distributors love this one, why don’t we do it – simple it makes no difference to supply. The Distributor replaces with another item. Also the discontinued item, magically re appears in 6 months or so.

    Again – make the Distributors’ use the data we send them!

    Yes, ALL PARTIES so why were the ANF party to EXCLUDING DISTRIBUTION ONLY NEWSAGENCIES in this trial?

    So why EXCLUDE Distribution?

    AS I said a little disjointed but if you are a ANF member and read the message – this probably makes sense.

    John

    3 likes

  9. Dennis Robertson

    Normally I wouldn’t comment about the ANF as I am no longer a member, however this issue is far to important to Newsagents and the ANF’s role in this appears to be unclear, or confusing even to their members.

    Given the impression the ACCC may have that the ANF perhaps represents the majority of Newsagents, it’s important for ALL Newsagents to understand where the ANF got their source data from which lead them to make certain decisions about how the supply of magazines works for Newsagents and how that supply (cost) links into the reason why Newsagents early return.

    So who did the ANF consult about this issue before deciding to support the MPA Application to the ACCC. Certainly not members as is evident by post8 above. So whom else did they get information from that impressed them enough to lend assistance to the Publishers for this pilot study?

    The question is of course rhetorical because I don’t expect an answer. But if I were a member……………………..

    I don’t think the ANF were in a position to choose their words more carefully because it seems they were/are clueless as to what Newsagents are facing operationally regarding supply.

    As someone who is being impacted by the ANF’s involvement in this issue, I would say to them; walk in the shoes of a Newsagent for a few hours on 2 days a week over a few weeks and you will change your mind about your current position.

    4 likes

  10. Peter B

    It is debatable that an ANF rep. can find their way to a newsagency without a GPS, if they have of course kept up with technology! Although we did have one in our shop 3 years ago (similarly our newspower rep had about the same attendance rate instore).
    Would love to see ANF management spend magazine days in a newsagency, see if they can fit 300 titles in the space of 150. It’s challenging, staff hate it, lucky I still see some value in magazines.

    3 likes

  11. Mark Fletcher

    The distributors will not use the data we want as it does not serve their business model. They can afford to have 50% of magazines sold through the model where retailers control supply but not 100%. This is where the current approach and the MPA trial disadvantages. Apparently, the ANF thinks this is okay.

    0 likes

  12. sean

    Sorry to sound like an a hole, but if you sign a contract with these requirements isn’t it 100% your own fault?

    3 likes

  13. Mark Fletcher

    Sean yes if that was the case. But the contracts were drafted in 1999 and much has changed since then. Also, the distributors fail to adhere to key clauses. But, then, we don’t legally challenge them.

    1 likes

  14. rick

    I think a big change to a contract as is being suggested, warrants a new contract being negotiated. I for one will not settle for an industry wide contract, but will seek a more personalised one that meets my needs. This should be our next battleground if we lose out with the current trial. We need to become more militant.

    4 likes

  15. Peter B

    The contracts would probably not pass the fair contract laws these day’s just need someone to test it

    0 likes

  16. Mark Fletcher

    The contract is 16 years old. Much has changed including how they deal with competitors compared to us. While some terms may differ between channels, supply terms ought to be the same for all magazine retailers.

    2 likes

  17. Alex

    I see magazine as a key traffic driver in my store, I know I stock many titles that has zero sales but I also know keep them in place attract customers, some just want to have a browse then maybe they will purchase a lotto ticket, a drink or a Marsbar. So my point is magzines we should not look at mags based on pure financial terms also as a key traffic generator.

    0 likes

  18. Mark Fletcher

    I agree we need a broader view Alex. The question is what range is necessary for it to be financially efficient. Also, that traffic is declining so newsagents urgently need to launch other traffic generators inter businesses?

    1 likes

  19. Adrian

    the more I read the conditions and rules of the magazine trial the only thing I see changing for us newsagents is we will lose the ability for us to early return. With their target min. sales efficiency of 55% we will still be supplied almost twice as many magazines as we will sell. No mention of number of titles compared to our number of magazine pockets anywhere. No conditions on magazine shelf life for a ridiculous 12 weeks and the ANF supports this trial?

    4 likes

  20. Amanda

    Hate to put a dampener on all these remarks but there are a couple of things which stand out here:

    (1) Retail agents want something different to retail newsagents. The time has come for the two to separate, as the two want different representation on the same topics.

    (2) The ANF , NANA, VANA, whoever else DO NOT represent newsagents. What is the level of membership of these associations? It is clear membership levels are very low, yet they are still representing the majority!

    (3) Decisions made by the ANF are done so through financial influence from major suppliers, rather than to support the members they are paid to represent.

    2 likes

  21. Dennis Robertson

    For Distribution Newsagents, most Subagents don’t look upon magazines as traffic generators. So we are compelled to strongly consider the financial aspects of the magazine model. To expand upon that statement I offer the following.

    When I started out as a Dist. Newsagent in 2003, the one thing that struck me was the mountain of magazines the outgoing person had in his garage at home. I said what are these here for. Response they are waiting for the returns date to send back. Response to the next obvious question was the subagents just send them back immediately, so he didn’t bother selling those titles anymore. So why are you still getting them???

    Point is it is hardly in the public/consumers interest to have piles of magazines unavailable to them sitting in a suburban garage because a Dist NA felt he couldn’t take any positive action with them. The other obvious aspect is what’s the use of getting piles of magazines that no-one wants. Where is the public interest in that?

    There is none, that’s the whole point. The almost entire benefit is to the major distributors who enjoy a financial incentive in adhering to their own rules. Of course if they get away with the no returns policy as part of a new Code of Conduct, then a further financial bonanza will happen via a big cash flow gift.

    So where’s the public interest in that.

    Generally, all I want is to be supplied on equal terms as others like the Duopoly.

    Generally, all I want is to for major distributors to respect the sales data that I send back via xChangeIT and to genuinely cancel titles that I have asked them to. You know, the ones they put back on almost as soon as you cancel it. Like the recent ones I’ve cancelled again this month;
    Lets get knitting
    Better Art
    Mythconceptions
    Coast to Coast Bus & Prop
    Digital Photography Redist.

    So the question remains – Why would the ANF support a push to ensure their members are sent back in time to 2003 or worse?

    The answer to Mark’s question, in my opinion and some ANF Members opinion, is a resounding YES. The ANF have misunderstood the MPA magazine supply trial.

    2 likes

  22. Mark Fletcher

    I’d be surprised if newsagents maintained their membership after this.

    4 likes

  23. MARK RICHARDSON

    The ANF not only are supporting this trial
    but they are also blaming Newsagents for not controlling their supply

    3 likes

  24. Dennis Robertson

    Exactly MarkR,

    So if the ANF just don’t get it, when to most Newsagents it’s mag101, then all the more reason for them to walk in the shoes of a Newsagent re mags. Even for just a short time.

    So it seems that even if I were a member, I would still be frustrated by the ANF’s stance. So what’s the point.

    We now have some ANF members wanting to front the pre-decision meeting to actually oppose what the ANF are standing for. Go figure!

    If they don’t respond to some of their very own members who have openly voiced similar concerns, then one has to ask the questions; why?, what are they really thinking?

    2 likes

  25. Hamish

    “If you are able to manage your supply and are able to work with the distributor to order what you need, then the need to early return would be negated.”
    I Absolutely agree ANF!! – Sadly thats never been a reality as you are well aware, maybe read your own magazine to confirm this.

    Why then would you agree to removing the one key (real time) indicator that monitors supply levels. This organisation is completely out of touch. its not the only issue….Lets agree (in a binding contract no less) to printing and distributing double the stock that can be realistically sold. Its disgusting what the environmental impact of this is. Double the paper, double the ink, double the freight movement, double what’s required.

    Its just wrong on so many levels ANF, get your heads around it.

    6 likes

  26. Bruce G

    Given the angle that the ANF has taken on this I wonder about where their income is derived. Is it mostly from memberships or are there sponsorships? If there are sponsorships who are sponsoring the ANF?

    7 likes

  27. Mark Fletcher

    As with any topic here, the ANF is welcome to respond.

    2 likes

  28. Bill Wareham

    Am I missing something with the MPA, how is is it in the publics best interest to allow an exclusive club of three publishers to get together to discuss supply arrangements?
    What other category would have such exclusivity. It’s like Coles & Woolies being the only members of a retailers association.

    4 likes

  29. Dennis Robertson

    Regarding the idea that being able to control your own supply will eliminate the need for early returns, I have concerns that a simple change of name or change of part name to a existing poor performing title will see NA’s saddled with the same poor performers for a set period of time with no chance of early returning. All under the guise of a ‘new’ title. I hope those concerns are baseless.

    All the same does anyone genuinely think that the Distributors will give up any part of their income or cash flow given past experiences?

    Refer Mark’s post#11.In part……
    “They can afford to have 50% of magazines sold through the model where retailers control supply but not 100%”

    Who would control the Distributors actions? Who does now?

    2 likes

  30. John Fitzpatrick

    All,

    Thursday I emailed the SA Manager of the ANF with my concerns over the MPA trial.

    I have had a response from the ANF;

    The ANF appears supportive of this trial for RETAIL ONLY Newsagents.

    Distribution is outside of the proposed trial.

    I suppose the logical question would be, if Retail was to loose the right to early return would that also happen to Distribution, or would the industry have a multi tiered returns system?
    How would a retail outlet with distribution fit into the model?

    In SA last year a group of Distribution Newsagents met with the ANF to discus the future of magazine distribution through the subagent network.

    The consensus of the group was very clear, we wanted the Distributors to USE the DATA we send them.

    The group saw no point and would not create and populate spreadsheets of proposed new standing orders for every title (we have over 2,000 active titles) we receive.

    Again (sound like a broken record!) we asked the that the distributors use the data we supply via XIT.

    Since those meetings nothing has come back from the Distributors.

    I thank the ANF for answering my questions.

    John

    1 likes

  31. jenny

    Cancelled my membership today.

    9 likes

  32. Mark Fletcher

    John the ANF has not answered the important questions though. Further, based on their own email to their members, they have demonstrated ignorance of the facts of the trial.

    2 likes

  33. Adrian

    Mark what actually happens if the ACCC deem the trial a success. how are we legally bound to a fundamental change in contracts we signed years ago that takes out our ability to early return because of a trial for 20 newsagents in which the MPA and Dist. can completely skew the results by limiting what titles and what quantities will be supplied? This appears an absolute farce.

    0 likes

  34. Mark Fletcher

    Adrian the contract is the contract. Are the rules better than what we have today? Yes but only by a difference which is so small it cannot be measures. Are they worse? By far because of the ban on early returns.

    The cynic in me sees them as a trojan horse.

    3 likes

  35. Bill Wareham

    Our number one issue should be that as the business owner we have ultimate control of our level of debt, therefore we need control over what range and quantity.
    Give me this and early returns is not an issue.

    1 likes

  36. MARK RICHARDSON

    John I think the response you received from the SA ANF Rep poses more questions than answers

    Whilst Distribution Newsagents may not be involved in the trial , what we do not know is if these proposed changes are adopted post trial, will the distribution Newsagents then be subjected to the same terms as Retail ? My view is yes they will be

    Does the SA ANF Rep have proof that Distribution Newsagents will not be affected ? Or is he just telling you what you want to hear ?

    One can only assume as to the ANFs motive in supporting the magazine distributors on such vital changes to our terms of trade . Even though I have seen this type of behaviour before (here in SA) I still shake my head in disbelief

    2 likes

  37. Dennis Robertson

    John, you are one of the good guys, so with all due respect, may I suggest the ANF have not really answered your question. Viz:

    Post#8
    “Yes, ALL PARTIES so why were the ANF party to EXCLUDING DISTRIBUTION ONLY NEWSAGENCIES in this trial?

    So why EXCLUDE Distribution?

    Post#30
    “I have had a response from the ANF;

    The ANF appears supportive of this trial for RETAIL ONLY Newsagents.

    Distribution is outside of the proposed trial.”

    Again, with due respect it doesn’t answer the question as to WHY Dist. NA’s are excluded from the trial, it’s merely a statement that it’s for Retail only and Dist is excluded.

    To me it just muddies the waters and raises more questions.

    One thing is clear though, there was not wide consultation, if any, with members before the ANF chose to support this MPA application to the ACCC.

    On the surface and in light of members posts above, it appears to be a shocking disservice to long and loyal members.

    2 likes

  38. Mark Fletcher

    If the trial was a serious test about genuine supply reform it would have included a selection of all types and sizes of newsagencies.

    2 likes

  39. Peter B

    I emailed our local ANF rep this week and tried to convince him that the MPA Code of Conduct was not a good idea for Newsagents. I believe I was unsuccessful.

    The ANF seem to think that we will have control of supply, however after rereading the Trial Rules I cannot find any mention at all of this.

    It did however get me to look at some figures. In the first quarter this year we returned 3859 magazines(SUPPLEMENTARY returns only), to a value of just over $24,000.
    I tried to work out the scenario for when early returns are disallowed. We do not early return weeklies, and monthly titles will have to be kept on the shelf or in storage for at least 3 months, longer if delayed billed.
    It seems that based on these figures, up to the end of the first 3 month cycle for monthly returns, we will probably have a build up of stock to the value of around the $24,000 mark and maybe more if the distributors decide to increase the mags not already at the 50% oversupply.

    That will be a permanent gain of at least $24,000 in stockholdings of magazines and cash lost to the business until we get out of magazines, which may be sooner than we think!!

    6 likes

  40. Mark Fletcher

    Peter each person who says they have met with an ANF rep about this issue has been pitched words by the ANF but no evidence of modelling that the new rules will make newsagents commercially better off or more competitive – because they won’t.

    2 likes

  41. June

    It will be a fait accompli for many newsagents to remove mags entirely if this mpa code of conduct is successful.

    We are already under huge cashflow impact because of the archaic contracts from the distributors and we need to get the publishers on our side which is difficult because they themselves are being rorted by the distribution companies.

    They are paid for the distribution of the titles and not for the sales of the title.

    If that little issue???? was solved then the problem would also be solved.

    The publishers know this but they want more of their product out in the retail space so they turn a blind eye to the impact of returns both on them and on us.

    57% returns ratio is unacceptable (to both parties) and it is a wonder that the environmentalists and greenies don’t have the publishers in their sights.

    Obviously the journos don’t report on it either as it might impact on their own jobs. Job protection is alive and well but good governance seems to be missing.

    I hope we have all sent in a submission to the ACCC because if you haven’t you need to stop whingeing about the possible outcomes (which we all know will favour the MPA, which represents, Goliath, the big end of town versus us, the David with the slingshot at the little end of town

    3 likes

  42. Mark Richardson

    The ANF have NO idea ,if Newsagents were able to control supply can you imagine the work involved in the first instance of getting your supply to an acceptable level and secondly maintaining your magazine supply.

    Dealing with new titles and magazines which change from one distribution to another would require constant maintenance

    As previously stated I constantly monitor IPS titles and email IPS standing order changes this takes time

    Prior to taking action on IPS titles I looked at my sales of IPS titles over a 3 month period compared to monies paid to IPS for the same period I actually lost money !!

    What makes me so angry is this could be fixed simply by the magazine distributors keeping supply close to our net sales

    For the ANF to blame Newsagents for not controlling their supply is not acceptable

    In the interests of fairness the ANF needs to make public how many Newsagents they ACTUALLY represent and disclose what financial interests (if any) exist between the magazine distributors and themselves

    It appears we have the MPA and the ANF are on one side of this issue and Newsagents on the other ,how has it come to this ?

    7 likes

  43. John Fitzpatrick

    Guys,

    All options MUST be on the table for the trial if it is to go ahead.

    The over supply (and under supply) has gone on for too long. Distributors are paid on distribution (this includes an allowance for returns handling)

    Newsagents are paid on nett sales.

    I will suggest at the ACCC conference that for the trial to have any credibility it needs to be expanded to include another five (5) Newsagencies (selection of both Retail and distribution only) selected to pay only on nett sales, after the returns close off period, I’m sure the POS companies will stand behind the integrity of the data.

    Surely if this is a true trial, then every option must be on the table.

    I am still waiting to hear if the ANF will be attending the ACCC conference call, in support of Newsagency members – but wait the close off date for attendees has passed (I think?)

    John

    2 likes

  44. Peter B

    We were evidently the ONLY Newsagent in SA to complain.
    It’s all playing politics for them.
    The saying is don’t bite the hand that feeds you, but in this case it’s double dipping.

    2 likes

  45. Mark Fletcher

    Given this ACCC conference has come about because of my newsXpress submission I’d be surprised if the ANF attended.

    3 likes

  46. Peter B

    The trial will prove what the MPA wants to prove. They control supply and will adjust it accordingly. The “chose ones” will have limited extra returns during the trial. It is just too easy for the MPA to manipulate outcomes of this trial.

    It is after the trial if and when the Code of Conduct becomes industry standard and we are left to the mercy of MPA and Distributors with no early returns available, that is the problem.

    1 likes

  47. Paul

    I agree Peter.

    I’ve been sitting here this morning looking at pretty much the same thing and the conclusion I have come to is that if the magazine trial goes ahead and becomes the new format for distribution then I will either be getting out of magazines completely or drastically cutting my magazine pocket holdings to 100 or less pockets and probably seeking to be a subagent rather than direct supply for those titles that I still want to carry if any at all.

    4 likes

  48. Mark Fletcher

    It is vital we explain to the ACCC that the trial is not testing rule changes which enable us to compete with those outlets given direct supply following deregulation. central to my own case is that the ACCC played a role in deregulation and left us with a model which disadvantages us compared to other retailers. The ANF had had this explained to them many times yet they have failed to present newsagents on this one key point.

    6 likes

  49. Paul

    Actually I’ll point out one other thing that I’ve considered and that is if this goes ahead in the proposed format I will only keep magazines that I KNOW I can sell and only in the volumes that I Know I can sell. If I look at many of the direct subscription deals I’m better off subscribing directly to them, receiving a bigger GP percentage on retail than what I get now and simply ensuring I only have enough supply to sell out the median number of item sales and no more.

    I would also look at direct importing some of the overseas specialist titles (mainly hobby related for me as I’m dramatically slanting part of my shop in that direction quite succesfully). There are several titles that I’ve looked at that I could subscribe to overseas and receive airmail for a lower cost than what they come through the local magazine distributors for. It’s insane !

    Finally there are also local specialist distributors that will sell you the same magazine that comes through G&G or Bauer on firm sale but at much better margins. There are alternatives in some circumstances to even having to use the local magazin distributors and if they are going to act in this way then we really should be looking at ways in whcih we can completely take them out of the picture in our own businesses.

    9 likes

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